Fed's Williams says current policy is appropriate to return inflation to 2%

John Williams, president of the Federal Reserve Bank of New York, stated on June 25 that the current monetary policy stance is well-positioned to bring inflation back to its 2% target. Williams said that with inflation at a high level, it must be consistently brought back to the 2% long-term target, adding that the current policy is well-equipped to achieve this goal. He noted that inflation is "clearly at a high level" and significantly above the Fed's 2% target. While he expects inflation indicators to slow slightly over the next few quarters, Williams added that significant risks remain in achieving the central bank's dual mandate.