Fed's Williams said the current monetary policy stance is well positioned to bring inflation back to target and that inflation is "undoubtedly too high." He flagged large-scale AI-related investment as a key uncertainty: while he expects AI spending to boost productivity materially over time, the economy is in a race between supply and demand and the size and duration of any imbalance are "highly uncertain." He noted that in some goods categories demand growth still outpaces supply. Williams sai

Fed's Williams said the current monetary policy stance is well positioned to bring inflation back to target and that inflation is "undoubtedly too high." He flagged large-scale AI-related investment as a key uncertainty: while he expects AI spending to boost productivity materially over time, the economy is in a race between supply and demand and the size and duration of any imbalance are "highly uncertain." He noted that in some goods categories demand growth still outpaces supply. Williams said the current policy stance, around 3.5%–3.75%, is sufficient to guide inflation back to target. Energy and related commodity prices appear to have peaked and are expected to retreat toward levels seen before the first Strait of Hormuz closure, though risks remain.