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Inflation should be elevated through remainder of year
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Policy is in exactly the right place, there is no need to raise or lower rates
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I’m not that worried about persistent impacts on inflation so far
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Higher energy prices are driving up costs and inflation
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Economy should growth around 2%, job market has stabilized
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The job market is healthy
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Inflation is up ‘quite a bit’
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I would expect inflation to peak in the next few months
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Inflation should be elevated through remainder of year
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Inflation is elevated in goods sector and energy related forces
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Inflation also elevated in tech due to AI
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A lot of inflation is due to tariffs and inflation and computer chips
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Hopefully energy prices will stabilize
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We will have to wait and see what happens with the latest tariffs
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Upside risks to inflation have increased
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We are not far from a neutral rate
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Expects inflation to be lower next year
These comments are not as hawkish as I would have expected. He’s not in any rush to hike or do anything to slow down inflation, which is well-above target and accelerating. This strengthens the argument that the Fed is falling behind the curve.
The comments fit with his recent public remarks, where he has argued that tariffs and energy prices are doing much of the work in keeping inflation above the Fed’s 2% target. At the same time, Williams has emphasized that inflation expectations remain anchored, the labor market is not adding meaningful inflation pressure and there are limited signs so far of persistent second-round effects.
On growth, Williams struck a relatively steady tone, saying the economy should expand around 2% and that the job market remains healthy. That leaves the Fed in wait-and-see mode: inflation is too high for comfort, but Williams does not yet sound convinced that the latest price pressures require a more aggressive policy response
