Fed’s Williams Expects Little Change to Underlying Inflation

Federal Reserve Bank of New York President John Williams said his outlook for underlying price pressures in the US was largely unchanged despite his expectation that higher energy costs stemming from the war in Iran will boost overall inflation.

“The story hasn’t changed very much” around underlying inflation, Williams said Tuesday in an interview with Bloomberg TV. He added that he anticipated core inflation, which excludes food and energy components, would rise by just one or two tenths of a percentage point.