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John Williams says inflation shocks have eased but policy is unclear

Williams said determining how restrictive monetary policy is remains difficult, even as he argued inflation pressures have moved past their worst phase.

Reported · Written up by our desk · Central Banks

FXStreet reports that New York Fed President John Williams told an audience at the University of Buffalo that the worst inflation shocks have passed, and he emphasized that price stability is foundational to the economy.

Williams also said it is hard to determine how restrictive monetary policy is, underscoring the challenge the Fed faces in calibrating interest rates based on evolving conditions.

The remarks come as the Federal Reserve aims to meet its two mandates, price stability and full employment, using interest rate adjustments as its primary tool.

The outlet notes that the FOMC meets eight times a year to assess economic conditions and decide policy, with the committee attended by the Fed’s Board members and regional Reserve Bank leadership.

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