New York Fed President John Williams voiced his support for the decision to hold rates steady in June, stating yesterday that it was the right move to allow for further data collection and assessment.
“We can take some time and assess and collect more information and then be able to act, knowing that we also communicated through our projections that we don’t think we’re done, based on what we know,” he said.
However, Williams hinted at further rate hikes while he reaffirmed his commitment to be “data dependent” in his decision-making. But he added that recent data “support the idea the Fed may need to raise rates further at some point.”
Williams’ statements were grounded in ongoing concerns about high core inflation, although he acknowledged the progress made in curtailing inflation so far. He highlighted a slowdown in the inflation of non-housing services prices, a key indicator closely watched by Fed officials. “Even in the category of core services excluding shelter, we’re seeing some slowing of inflation,” he added.