17:26 - 3.08.2026

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August 3, Fineko/abc.az. John Williams, president of the Federal Reserve Bank of New York, stated that he expects inflation to decline in the 2nd half of the year, supported by current interest rate policy.

Williams pointed out that the current interest rate level is ideally suited to support the disinflationary process. Last week, the Fed kept its base rate in the range of 3.50%-3.75%. At the same time, he emphasized that if inflation does not move steadily towards the target level of 2%, the regulator will not hesitate to further tighten monetary policy.

Williams added that the conflict in the Middle East, according to his forecasts, will have limited impact on inflationary pressures and will not lead to a sustained surge in prices.