New York Fed President John Williams said underlying US inflation remains
largely unchanged despite higher energy costs from the Iran war lifting headline
prices. He expects core inflation to rise only 0.1–0.2 percentage points and
trimmed his 2026 growth forecast to 2%–2.5% from 2.5%–2.75%. Williams said the
Fed’s current policy stance is appropriate, with no need to adjust interest
rates, allowing time to assess the economic impact of Middle East tensions.
