Fed's Williams: Inflation to hit 2.75%-3% this year on energy prices
Federal Reserve Bank of New York President John Williams said on Thursday that they are seeing emerging signs of supply chain disruptions and added that he is projecting inflation to hit 2.75%-3% this year, due to rising energy prices, per Reuters.
Key takeaways
"Middle East war already lifting inflation."
"Amid challenges, monetary policy is well-positioned."
"Economic outlook highly uncertain amid war impact."
"Some of energy shock now passing through into other prices."
"Swift end to conflict should help ease inflation pressures."
"Expecting unemployment to stay between 4.25%-4.5%."
"Projecting inflation to return to 2% target in 2027."
"Forecasting 2%-2.5% GDP growth in 2026."
"Labor market sending out mixed signals."
"Fed rate control system is working very well."
"Expecting tariff impact on inflation to wane this year."
Market reaction
The US Dollar Index clings to small daily gains above 98.00 following these remarks.
