Inflation Likely Peaked, Williams Says; Fed Policy Positioned for 2% Path

New York Fed President John Williams argued inflation has likely peaked and should ease toward 2% over the coming years, forecasting about 3.25% by year‑end as tariffs, oil shocks and AI-driven spending ease and more supply comes online. He emphasized a solid labor market, anchored inflation expectations, and a policy stance well positioned to reach the 2% goal, even as markets still price in a possible rate hike by year’s end; CPI fell 0.4% in June but inflation remains above target.