Fed's Williams says current policy stance fits path back to 2% inflation

John Williams, president of the Federal Reserve Bank of New York, said the current monetary-policy stance remains appropriate to bring inflation back to the Federal Reserve's 2% target, while emphasizing that officials are prepared to tighten further if needed. He said he remains optimistic that inflation pressures will gradually ease, but added that the Federal Reserve would not hesitate to raise interest rates if that does not happen and price pressures fail to return to target. Williams also previously said he strongly supported the Federal Open Market Committee's recent decision, argued the Fed does not need to follow the market's interest-rate outlook, and said rising investment in artificial intelligence is not at a level that threatens financial stability.