Fed's Williams States Monetary Policy Is Appropriately Set Given Positive Economic Prospects

New York Fed President Foresees Strong Economy by 2026

John Williams, President of the Federal Reserve Bank of New York, shared on Monday that he anticipates robust economic conditions in 2026. He also noted there is currently no compelling reason to lower interest rates in the near future.

Williams explained that the Federal Open Market Committee has shifted monetary policy to a stance that is only slightly restrictive, bringing it closer to a neutral position. According to his prepared remarks for the Council on Foreign Relations in New York, he stated, "Our current monetary policy is well-suited to help stabilize employment and guide inflation back to the FOMC’s long-term target of 2 percent."