New York Fed President Williams Says Inflation Still Far Too High and Rate Increases Likely Ahead

New York Federal Reserve President John Williams said on November 12 that inflation remains far too high and that the central bank still has work to do to bring monetary policy to the right place, signaling that further interest rate increases are likely ahead as the Fed pursues its 2 percent inflation target.

Williams also clarified the Fed's policy framework, emphasizing that the central bank's approach targets the rate of inflation rather than reversing changes in the overall price level. That distinction is significant: it means the Fed is not aiming to bring prices back down to where they were before the recent run-up, but instead to slow the pace at which prices are rising going forward.