NY Fed President Expects Inflation Decline by Year's End

According to John Williams, president of the Federal Reserve Bank of New York, inflation is expected to decline in the second half of 2026. He believes that the current interest rate level is ideal for supporting the disinflationary process.

Last week, the Fed kept its base rate within a range of 3.50%-3.75%. Williams emphasizes that if inflation does not move steadily towards the target level of 2%, the regulator will not hesitate to further tighten monetary policy.

In response to the conflict in the Middle East, Williams forecasts that it will have limited impact on inflationary pressures and will not lead to a sustained surge in prices.