New York Fed President signals further increases

New York Fed President John Williams said the Fed was right to keep interest rates steady in June, but that it may be necessary to raise them again at some point given the ongoing economic strength. New York Fed President John Williams said Wednesday that the central bank was right to keep interest rates steady three weeks ago, while hinting that it may have to raise rates again at some point given the ongoing economic strength. “We still have some work to do to get supply and demand in balance, to bring inflation down. I will rely on the data in thinking about what steps the Fed will take in the future,” Williams said at an event hosted by the New York Fed. Williams declined to answer a question about whether he believed a rate hike was needed in July, saying New York Fed experts had not yet started working to help him make a decision. Williams said inflation was still too high for his comfort level, but acknowledged that price pressures were easing. “I’m not happy” with where price pressures are at, Williams said at an event at his bank. He also said labor demand remains high and the economy is handling rate hikes "remarkably well."