Fed's Williams said current monetary policy settings are appropriate and he sees
no need now to raise or cut rates, adding he does not see a clear directional
path for future policy. The Fed has kept rates unchanged so far this year, but
officials are divided after an energy-driven jump in prices; some warn that if
shipping through the Strait of Hormuz does not recover quickly, a rate hike
could be needed soon. The Fed-favored inflation gauge rose 3.8% YoY in April,
the largest increase since 2023. Unemployment is 4.3%, which some officials
describe as near full employment.
