{
  "id": 10763333,
  "title": "Fed’s Williams says worst inflation shocks have passed",
  "url": "https://urgent.news/2026/09/29/feds-williams-says-worst-inflation-shocks-have-passed",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-29T19:18:00.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/feds-williams-says-worst-inflation-shocks-have-passed-202609291918"
  },
  "original_language": "en",
  "account": "New York Fed President John Williams discussed inflation and monetary policy at the University of Buffalo, emphasizing that price stability is crucial for economic health. He acknowledged that determining the appropriate level of monetary restriction is a challenging task, adding that inflation is expected to ease as the most severe shocks have largely subsided. Williams highlighted that energy prices remain a significant factor in the economy, though the US is less vulnerable compared to previous periods. He expressed uncertainty about further increases in energy prices, depending on the course of the war. Williams stressed that the September rate hike aims to expedite the return to the Fed's 2% inflation target. He is a strong advocate for relying on data to guide monetary policy decisions. Williams noted the existence of a \"K-shaped economy,\" acknowledging its reality. He acknowledged that artificial intelligence (AI) is driving up asset market valuations and contributing to wealth effects. Early indications suggest that AI is also boosting productivity gains. The Federal Reserve (Fed) remains committed to neutrality and should refrain from partisan politics, focusing solely on data-driven decisions. A period of heightened productivity could potentially raise the natural rate of interest. The US monetary policy landscape is heavily influenced by the Federal Reserve (Fed), which has two primary objectives: achieving price stability and promoting full employment. The Fed's main tool for achieving these goals is by altering interest rates. When inflation exceeds the 2% target, the Fed raises interest rates, increasing borrowing costs across the economy and strengthening the US Dollar (USD) as it becomes more attractive for international investors. Conversely, if inflation falls below 2% or unemployment rates become too high, the Fed may lower interest rates to encourage borrowing and weaken the USD. The Federal Reserve (Fed) convenes eight policy meetings annually, where the Federal Open Market Committee (FOMC) evaluates economic conditions and makes monetary policy decisions. The FOMC consists of twelve officials, including seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four rotating regional Reserve Bank presidents, each serving a one-year term. In exceptional circumstances, the Federal Reserve may implement a policy known as Quantitative Easing (QE), which involves the Fed injecting additional dollars into the financial system to stimulate lending and investment. QT, the opposite of QE, entails the Fed reducing its bond purchases, leading to a potential strengthening of the US Dollar. Analysts and markets observers continue to monitor the impact of Fed policy decisions, energy prices, and technological advancements on inflation and monetary conditions.",
  "summary": "New York Fed President John Williams spoke at the University of Buffalo and said that “price stability is foundational for the economy,” adding that “determining how restrictive monetary policy is, is hard.”",
  "key_points": [
    "Fed President John Williams stated worst inflation shocks have passed",
    "Energy prices remain significant factor in economy, US less vulnerable",
    "September rate hike aims to expedite return to Fed's 2% inflation target"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}