New York Fed President John Williams signaled Thursday that he remains comfortable keeping interest rates unchanged for now, arguing that policymakers are still waiting to see how inflation pressures tied to the Middle East conflict evolve. Speaking in New York, Williams said monetary policy is currently “in a good place right now” and emphasized there is no immediate case for either tightening or easing.
“I don’t see there’s any reason at all to raise rates right now or lower rates right now,” Williams said. While acknowledging that the Middle East war has pushed inflation pressures higher, he stressed that “longer-term projections have been stable, which is a good thing.”
Williams suggested he is not yet seeing signs that energy-driven inflation is spreading broadly through the economy. “We’re not seeing… unusual second-round effects or persistent effects. But we just have to keep watching,” he said. Williams also noted that much of the tariff-related inflation impact may already have occurred.
