world-economy

Fed's Williams Says Inflation Has Peaked, Rate Hikes Unlikely Near Term

New York Federal Reserve President John Williams signaled Wednesday that the central bank will maintain current interest rates, dismissing market expectations for near-term hikes. Williams told business leaders that multiple indicators suggest inflation has reached its peak and will decline in coming quarters. The inflation surge followed February's geopolitical tensions, which drove oil prices higher. Williams cited tariffs and technology spending as additional contributors but expects those pressures to ease. Oil prices should moderate to pre-conflict levels, while tariff impacts will stabilize as expiring duties get replaced. The labor market remains stable without generating inflationary pressure, and inflation expectations remain anchored. Williams noted the economy is growing on trend, positioning current monetary policy appropriately to restore inflation to the Fed's 2 percent target sustainably.