New York Federal Reserve President John Williams stated that U.S. interest rates are likely to remain high until the central bank is confident inflation is returning to 2%. Despite progress in slowing inflation, Williams expects it to be 2.25% by year-end and reach the Fed’s 2% goal by 2025.
Williams cautioned against expectations of rate cuts in March, highlighting the importance of vigilance in achieving long-term price stability. He described inflation as three layers, noting progress in commodity prices, goods, and services.
