John Williams says Fed is ready for Middle East uncertainty as rate cuts loom

He warns supply shocks could hit harder

New York Fed President John Williams said monetary policy is positioned to handle uncertainty from potential Middle East war risks. He expects interest rate cuts when inflation eases, while warning inflation pressures remain tied to tariffs and energy costs. Despite worries about possibly more severe supply shocks, he expects economic growth to stay resilient and the Fed to stay in a wait-and-see stance.