New York Fed’s Williams says energy-driven inflation should fade as oil impulse wanes
John Williams said energy prices are unlikely to drive inflation going forward unless oil prices rise sharply amid uncertainty from the Middle East conflict, adding inflation should come down.
By Michael S. , Sept 29 (Reuters) — Federal Reserve Bank of New York President John Williams said on Tuesday that he’s not looking for energy prices to be the driver of inflation in the future that they have been thus far this year. “Depending on what happens with the [Middle East] conflict — and there's a lot of uncertainty about that — if you think, well, oil prices probably aren't going to double, increase a lot again, then that impulse to inflation should fade, just like the tariff impulse to inflation has faded,” Williams said in an appearance at the University at Buffalo.
“Therefore, inflation should actually come down” given that energy prices are no longer likely to create outsized gains, he added. (Reporting by Michael S. com, 917-216-7307)