--- title: "Fed's \"Number Three\" Williams: Monetary Policy Currently in a Favorable \"Wait-and-See\" Position, Inflation to Be Around 2.75% This Year" type: "News" locale: "en" url: "https://longbridge.com/en/news/281886803.md" description: "More news, continuously updated" datetime: "2026-04-07T12:34:42.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281886803.md) - [en](https://longbridge.com/en/news/281886803.md) - [zh-HK](https://longbridge.com/zh-HK/news/281886803.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/281886803.md) | [繁體中文](https://longbridge.com/zh-HK/news/281886803.md) # Fed's "Number Three" Williams: Monetary Policy Currently in a Favorable "Wait-and-See" Position, Inflation to Be Around 2.75% This Year Fed's number three official, New York Fed President Williams, commented on the current monetary policy stance and inflation trends on Monday, emphasizing that policy is currently in a favorable "wait-and-see" position and inflation should be around 2.75% this year. Williams stated that monetary policy is currently in a favorable "wait-and-see" position, implying that the Federal Reserve is inclined to stay put in the short term. He also pointed out that despite ongoing geopolitical conflicts, the overall trend of core inflation has not significantly changed, but tariffs remain an important factor in the inflation outlook that cannot be ignored. He predicted that inflation should be around 2.75% this year. Regarding the leadership of the Federal Reserve, Williams clearly stated that Powell remains the Chair of the Federal Open Market Committee (FOMC) until his successor is confirmed, and he gave a positive evaluation to the rumored successor candidate Kevin Warsh, saying he "has a deep understanding of the Fed's mission." ## Monetary Policy Unchanged, Tariff Pressures Cannot Be Ignored Williams stated that despite ongoing geopolitical conflicts, the overall trend of core inflation has not significantly changed, but he emphasized "very close attention" to underlying inflation. He expects that underlying inflation will gradually soften later this year, but tariffs still pose a significant uncertainty in the inflation outlook. In terms of policy direction, Williams was cautious, believing that the current interest rate level puts the Fed in a "favorable wait-and-see position," implying that there is no need to adjust policy in the near future until inflation and employment data provide clearer signals. ## Labor Market "Low Hiring, Low Layoffs," Economic Resilience Remains Prominent Williams described the current employment market as "quite complex" and characterized its structural features as "low hiring, low layoffs"—the market is neither clearly cooling nor showing expansionary momentum, maintaining a delicate balance. He also holds a relatively optimistic view of the overall U.S. economy, pointing out that the economy exhibits "strong resilience," technological advancements have broadly enhanced productivity levels, and wage growth is largely matched by productivity levels, without creating additional inflationary pressure. He also noted that businesses have gradually adapted to a more uncertain operating environment, demonstrating a certain degree of adaptive resilience. ## Powell's Position Stable, Williams Endorses Leadership Transition Williams provided clear reassurance regarding market concerns about the Federal Reserve's leadership. He stated that Powell will continue to serve as the Chair of the FOMC until his successor, Kevin Warsh, receives formal confirmation from Congress, and any early departure decision rests with Powell himself. Williams gave a positive assessment of Warsh, saying he has a "deep understanding" of the Fed's mission and is "very knowledgeable" about the Fed. He added that he had not spoken with Warsh recently but emphasized that "anyone entering the Fed understands the importance of the mission" and explicitly stated that leadership concerns are "not an issue" and the Fed will operate as usual. The above remarks help to ease external doubts about the Fed's independence and policy continuity, providing some stable support for interest rate-sensitive assets. ### Related Stocks - [NASDAQ Composite Index (.IXIC.US)](https://longbridge.com/en/quote/.IXIC.US.md) - [S&P 500 (.SPX.US)](https://longbridge.com/en/quote/.SPX.US.md) - [Dow Jones Industrial Average (.DJI.US)](https://longbridge.com/en/quote/.DJI.US.md) - [Fidelity MSCI Financials ETF (FNCL.US)](https://longbridge.com/en/quote/FNCL.US.md) - [Vanguard Financials ETF (VFH.US)](https://longbridge.com/en/quote/VFH.US.md) - [Fidelity Nasdaq Composite ETF (ONEQ.US)](https://longbridge.com/en/quote/ONEQ.US.md) - [The Financial Select Sector SPDR® ETF (XLF.US)](https://longbridge.com/en/quote/XLF.US.md) ## Related News & Research - [Fed's Williams says Middle East war will drive up inflation - Bloomberg](https://longbridge.com/en/news/281885741.md) - [Fed's Williams: Monetary policy is well-positioned to manage risks](https://longbridge.com/en/news/281568573.md) - [Fed’s Williams Signals Hold on Rates, Higher Inflation from Iran War](https://longbridge.com/en/news/281920981.md) - [Fed's Williams Expects Headline Inflation to Be Elevated by War](https://longbridge.com/en/news/281892822.md) - [Ny Fed: March Year Ahead Expected Inflation 3.4% Versus 3% In February](https://longbridge.com/en/news/281902150.md)