The cost of goods and services has stayed at an elevated rate for a prolonged duration, the Federal Reserve’s John Williams said. Williams noted that inflation levels are still too high for an extended period, though he added that the current economic climate provides an appropriate window for the Fed to gather more information before making further policy decisions.
While price pressures persist, Williams described inflation expectations as well anchored. He also stated that the economic impact of trade tariffs has mostly finished working its way through the financial system and is now primarily in the past.