Fed's Williams Says Still Work to Do to Get Monetary Policy to Right Place
By Jessica Coacci
NEW YORK--Federal Reserve Bank of New York President John Williams said the central bank still has work to do to get monetary policy to the right place, and inflation remains too high.
"I feel that the data is speaking very clearly to us," Williams said at an event in New York on Thursday. "The economy is strong, labor market continues to strengthen, and inflation is persistent."
Williams said the central bank still has work to do in terms of getting monetary policy to the right place. The Fed held interest rates steady in October after raising them by a quarter-point in September.
"We need to take actions over time that will ensure that we get inflation back to our 2% goal in a timely manner, and on a sustained basis," Williams said.
Previously, Williams said another rate increase "late this year" might be appropriate.
October's CPI report reinforced the case for market participants to price in another rate hike at the Fed's final meeting next month. Expectations for higher rates now sit around 85% for December, according to CME's FedWatch tool.
The question now is how fast or aggressive the Fed needs to move to combat inflation above target. Cleveland Fed President Beth Hammack reiterated her view that small, incremental rate increases give businesses and households time to adjust to higher rates at a separate event Thursday.
With inflation above the Fed's target for over five years, policymakers face a challenge to navigate an economy that's been running hot in some sectors while higher interest rates cool others. Data released Thursday showed existing-home sales fell to their lowest level since 2010, and mortgage rates could remain elevated as inflation concerns put pressure on Treasury yields.
Other voting officials such as Fed governor Michelle Bowman said Tuesday that against a backdrop of tightening financial conditions, "the benefit of additional policy tightening has to be carefully weighed against its costs for interest-rate-sensitive sectors."
Write to Jessica Coacci at jessica.coacci@wsj.com
(END) Dow Jones Newswires
November 12, 2026 20:30 ET (01:30 GMT)
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