Fed's Williams Says 'Work to Do' as Inflation Stays Too High
The New York Fed chief said the Fed can slow price rises but can't roll prices back. Futures put a December hike at about 91%, CNBC said.
New York Fed President John Williams said Thursday evening that inflation is "persistent" and the Fed will need to act "over time" to get it back to 2%, with its policy rate now at 3.75% to 4%.
"We still have work to do ... to get monetary policy to the right place," Williams said at a UC Berkeley alumni event in New York, Reuters reported. He didn't say when the next increase would come or how large it would be. A TMGM market note of his remarks records the same message: inflation "too elevated" and an economy that is "resilient."
Williams carries extra weight. The New York Fed president is a permanent voting member of the rate-setting Federal Open Market Committee, under the Fed's own rules.
The Fed can't lower the price level
Asked about the cost of living, Williams said there's little the Fed can do about it. The Fed's tools work on the speed of price increases, not on the price level itself. Raising rates cools borrowing and spending so prices rise more slowly; it doesn't make last year's groceries cheaper.
Trying to "put the genie back in the bottle" by pushing prices down "creates huge distortions and damage to the economy," he said, according to Reuters.
How big the next step is
Futures traders put about a 91% chance on a December hike, CNBC reported from CME FedWatch data, after Tuesday's October consumer price report came in hotter than expected. Core prices rose 0.3% in the month, Reuters said.
Not every official wants big moves. Cleveland Fed President Beth Hammack has argued for smaller, steady increases so the economy can adjust, according to Reuters and a Babypips market recap.
Bitcoin fell 6.8% in the 24 hours to 11:54 p.m. ET, to about $68,690, CoinGecko data show.
In our opinion: anyone waiting for prices to slide back to 2019 levels just heard the Fed say that isn't on the menu. The live question is pace, a quarter point or a half, and Hammack's case for smaller steps is the counterweight to watch. The answer comes at the Dec. 8-9 meeting.
Sources: Reuters via MarketScreener: Fed's Williams says central bank has 'work to do' · Reuters via U.S. News: Fed's Williams says central bank has 'work to do' · TMGM: Fed's Williams: Inflation remains too elevated · Federal Reserve: About the FOMC · Federal Reserve: FOMC meeting calendar · CNBC: Dollar reaches 19-month high as rate expectations dominate · Babypips: Financial and forex market recap, Nov. 12, 2026 · CoinGecko: Bitcoin price
Revisions
First published .
No revisions since publication.
We fix errors and say so. See every correction on the Blackmint corrections page.