Fed official says US inflation 'too high', warns return to 2% target essential
New York Federal Reserve President John Williams said US economic growth has remained resilient but inflation is 'too high' and must be brought back to the 2% target on a sustained basis, speaking at a European Central Bank conference in Frankfurt.
United States economic growth has remained remarkably resilient in the face of successive shocks, but inflation is too high and it is essential to bring it back to the 2 per cent target, New York Federal Reserve President John Williams said on Friday.
"Inflation is absolutely too high. It's been too high for too long," Williams told a European Central Bank conference in Frankfurt. "It's absolutely essential that we bring inflation back to our 2 per cent target in a timely manner and on a sustained basis."
Williams made the remarks on 6 November 2026 as the US economy continues to navigate global headwinds. His comments come amid ongoing debate over the pace of monetary policy tightening and the trajectory of price pressures across major economies.
The New York Fed president did not specify a timeline for achieving the 2 per cent goal but stressed the need for action. The Federal Reserve has been raising interest rates to cool demand and curb inflation, which has remained stubbornly above the central bank's target.
Economists have noted that while US economic output has held up better than many forecast, persistent price rises continue to squeeze households and businesses. Williams' intervention underscores the Fed's determination to restore price stability even as growth remains resilient.
The speech in Frankfurt, delivered to a European Central Bank conference, also highlighted the interconnected nature of global inflation challenges. Central bankers from both sides of the Atlantic have been grappling with similar trade-offs between combating inflation and sustaining economic expansion.