Fed's Williams: Now is an appropriate time to gather further information

The US economy remains remarkably resilient. Speaking on Friday, New York Federal Reserve (Fed) President John Williams also described the labour market as stable and solid, Reuters reported.

Main points

"Inflation too high for too long."

"We've seen tariffs effect work way through, mostly now behind us."

"Energy prices showing up in airfares in expected way."

"We've seen narrow effect of AI in prices such as chips."

"Essential that we bring inflation to 2% in timely manner."

"Monetary policy takes a year or two to take effect, we have to be forward looking."

"Inflation expectations well anchored, wage growth consistent with goal."

"This is appropriate time to accumulate more information."

Inflation remains too high despite US economic resilience, Williams says

A 6/10 FXS Speechtracker score put Fed’s Williams moderately above the historical hawkishness baseline of 5.4/10. His remarks highlighted a “remarkably resilient” US economy, stronger growth and a firm labour market. Although tariff and energy effects were characterised as largely behind us and inflation expectations as well anchored, he maintained that inflation had been “too high for too long” and that a timely return to 2% was “essential”. This points to a preference for maintaining restrictive policy while remaining data-dependent. Describing the present as an “appropriate time to accumulate more information” suggests he favours waiting rather than easing imminently. That stance should contain near-term downside for the dollar, despite some qualifications concerning temporary price drivers.