New York Fed President John Williams said he expects interest rates to continue to rise and stay at those levels until inflation falls.
Speaking to the Wall Street Journal, Williams emphasized that he is one of those who believe that interest rates should remain high until inflation comes down. “This is not a policy that we will implement for a small period and then change course,” he said.
The Fed’s current policy rate is between 2.25-2.50 percent, and the core PCE, which it considers to measure inflation, was 4.6 percent in July.
Atlanta Fed President Raphael Bostic said he would support a lower rate hike if inflation falls. However, Bostic stated that the Fed could not end interest rate hikes without bringing inflation towards its 2 percent target.
