Fed’s Williams: Inflation is still 'far too high'

Agustin Wazne FXStreet

Federal Reserve (Fed) Bank of New York President John Williams said in the Future of Market Liquidity and Functioning Workshop in New York on Thursday that inflation remains “far too high,” while stressing that policymakers are actively debating different inflation scenarios as energy prices, artificial intelligence investment and productivity trends shape the outlook.

Key takeaways:

Inflation is still “far too high,” keeping the Federal Reserve focused on the risks to price stability.

Markets still expect Oil prices to decline over the next six to 12 months.

Monetary policy remains focused on how energy prices feed through into inflation.

AI investment is currently driving inflation, adding to demand and cost pressure.

The Fed is actively debating various inflation scenarios as uncertainty remains elevated.

Williams said the latest Fed Minutes captured a “collective reaction function,” reflecting how policymakers are assessing incoming data and risks.

In the longer run, Williams said AI investment should become a positive supply shock.

His base case is for broader AI adoption to boost productivity over time.”

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.17%	-0.08%	-0.16%	0.02%	-0.18%	-0.89%	-0.19%
EUR	0.17%		0.10%	-0.02%	0.18%	0.02%	-0.70%	-0.02%
GBP	0.08%	-0.10%		-0.11%	0.08%	-0.08%	-0.79%	-0.11%
JPY	0.16%	0.02%	0.11%		0.17%	0.03%	-0.72%	-0.01%
CAD	-0.02%	-0.18%	-0.08%	-0.17%		-0.16%	-0.88%	-0.19%
AUD	0.18%	-0.02%	0.08%	-0.03%	0.16%		-0.72%	-0.02%
NZD	0.89%	0.70%	0.79%	0.72%	0.88%	0.72%		0.69%
CHF	0.19%	0.02%	0.11%	0.01%	0.19%	0.02%	-0.69%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

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