ICYMI: NY Fed Williams delays 2% inflation target to 2028, sees policy well positioned
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Williams's remarks ( here, earlier ) reinforce a higher-for-longer rate posture, with the Fed's preferred inflation gauge running at 4.1% in May and the 2% target now pushed out a full year. Markets pricing any near-term easing face a direct pushback from a senior Fed voice. The
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4 itemsFed's Williams pushes back hitting 2% inflation target to 2028 from 2027
Fed Williams sitting on the fence on inflation, but says persistent above target
Lead — The desk interprets John Williams' recent remarks as a signal of cautious optimism regarding inflation, with longer-term expectations remaining stable despite near-term pressures. Per the full note [source], Williams emphasized that the labour market is not currently a source of inflationary pressure, which supports the Fed's current stance of watchful patience. This aligns with our consensus target of 1.075 for the USD/EUR pair, as traders await clearer signals from the Fed. The upcoming economic data releases may provide further clarity on inflation trends.