Fed's Williams: Easing Inflation, But Ready to Act

New York Federal Reserve President John Williams expressed optimism that inflation will ease gradually, but warned that the central bank will act if it doesn't.

In an interview with Reuters, Williams said he expects energy prices and trade tariffs to peak, allowing disinflationary forces to reassert themselves and bring inflation back down to target of 2%.

However, Williams acknowledged uncertainty around the outlook due to ongoing conflict in the Middle East and its impact on energy prices. He predicted that once a resolution is reached and shipping traffic resumes, improvement could be swift.