Fed’s Williams: Policy well-positioned, unlikely to see further rate hikes

New York Fed President John Williams told CNBC overnight that current monetary policy is “well-positioned” and “restrictive” enough to help bring inflation down to target levels. He added that further rate hikes are unlikely, stating, “I don’t see that as the likely case.”

Williams highlighted that interest rates in the US will “eventually need to come down” based on data analysis, but the timing will depend on how effectively the Fed achieves its goals. He expects inflation to moderate in the second half of this year as the economy finds better balance and global inflationary pressures ease.

However, Williams emphasized, “Inflation is still above our 2% longer-run target, and I am very focused on ensuring we achieve both of our dual mandate goals.”