Fed's Williams (voter) says higher energy prices are lifting costs and inflation. No obvious argument to alter interest rates currently.

Inflation/Prices

• Inflation is up, "quite a bit".
• Anticipates inflation peaking in the next few months. Should be elevated for the remainder of 2026, and then lower in 2027.
• Goods, energy, tech and AI are lifting inflation.
• Much of the price pressures are due to computer-related price increases, and tariffs.
• Not particularly concerned about the persistent impact on inflation, of energy, thus far. Hopes that energy upside stabilises.
• Upside risks to inflation have increased.

Job Market

• Describes it as "healthy".
• Market has stabilised.

Economy

• Solid growth around 2%.

Monetary Policy

• Is in the correct place, no need to move rates.
• No obvious argument to alter interest rates currently.
• Current policy is "modestly" restrictive.
• If conditions in the economy change, the Fed would then need to respond.
• Bond market will need to make an assessment on policy. Market has been dependent on data.
• "Not far" from a neutral rate.

New Chair

• Williams does not intend to change his public speaking work under Warsh.
• Fed does not have groupthink.