【US Interest Rates】 Fed official Williams expects falling energy prices to push overall inflation down, monetary policy is currently in a good place.

New York Fed President John Williams said he expects falling energy prices to push overall inflation down in the coming months, reiterating that the Fed's policy is in a good place.

Williams said:

"I'm actually a bit more optimistic about the near-term inflation outlook, as we will see energy prices decline"

Williams said monetary policy is well positioned to achieve the Fed's mandate. He also said the labor market is stable and economic growth remains solid.

'Strong consensus' to remove forward guidance on future rate path

He also said there was a "strong consensus" among FOMC members to remove guidance on the future rate path from the policy statement following the June meeting.

He said that given uncertainty about the inflation and economic outlook, it is no longer appropriate to try to provide clear forward guidance on the future path of interest rates. "There is too much uncertainty."