New York Federal Reserve President John Williams on Thursday said inflation is still too high, but he is confident it will start decelerating later this year. With markets on edge over the direction of monetary policy, Williams offered no clear indication of his position on possible interest rate cuts. Instead, he reiterated recent positions from the central bank that it has seen a “lack of further progress” toward its goals as inflation readings have been mostly higher than expected this year.
But higher-than-expected inflation readings have altered that landscape dramatically, and current pricing is pointing to just one decrease, probably in November. “With the economy coming into better balance over time and the disinflation taking place in other economies reducing global inflationary pressures, I expect inflation to resume moderating in the second half of this year,” Williams said.