Fed's Williams says inflation is 'absolutely too high' as rate relief stays distant

John Williams, president of the Federal Reserve Bank of New York, said Friday that inflation remains too high after several shocks to prices. He spoke at a European Central Bank conference in Germany ¹².

Inflation is absolutely too high. It's been too high for too long.

Williams said it is essential to bring inflation back to the Fed's 2 percent target in a timely way and on a sustained basis ¹. He gave no signal about the next move on interest rates. He backed the Fed's view that officials should gather more information first ².

Prices have been above target for years

Inflation has stayed above the Fed's 2 percent goal for five and a half years, The Hill reported. It has risen this year amid the Iran war ¹.

The war has pushed up U.S. energy prices because Iran has restricted shipping in the Strait of Hormuz, a key oil route ¹. Williams also acknowledged that President Trump's import tariffs and the buildout of artificial intelligence (AI) have put pressure on prices ¹.

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He described the economy as resilient in the face of those shocks. He pointed to a stable and solid labor market ¹. Employers added a better-than-expected 165,000 jobs in October, the Bureau of Labor Statistics reported Friday ¹.

Where interest rates stand

Fed officials raised interest rates by a quarter point in September. They held rates steady last week, leaving the federal funds rate at a range of 3.75 percent to 4 percent ¹. That is the Fed's benchmark short-term rate, and it influences what banks pay savers and charge borrowers.

The Federal Open Market Committee, the Fed panel that sets rates, meets again Dec. 8-9. Fed Chair Kevin Warsh said last week that holding rates would give officials time to evaluate incoming economic data ¹.

The day before Williams spoke, two other Fed officials, Hammack of the Cleveland Fed and Barkin of the Richmond Fed, each argued for gradual rate increases, one report said ². Williams did not endorse that view.

Williams said officials must consider where the economy is "likely to be" in the future, not just look backward ¹. He noted that rate decisions work slowly. He said the full effect takes a year or two ¹.

Why it matters

That matters most for people on fixed incomes. Higher prices for energy and groceries eat into Social Security checks and savings, and the Fed's top regional officials are not signaling that rate cuts are near ¹².

The pattern is that the Fed is managing a price problem tied partly to tariffs and the Iran war, both of which come from Washington's policy choices. Democrats, who won Congress this week, have said they will make affordability a priority. Williams' remarks suggest the Fed will not solve that for them soon.

What happens next: the Fed meets Dec. 8-9, and the next inflation report will show whether prices are cooling ¹.

The Record

1. Sep 1, 2026Fed officials raised interest rates by a quarter point in September ¹.
2. Oct 30, 2026The Fed held rates steady, keeping the federal funds rate at 3.75 percent to 4 percent ¹.
3. Nov 6, 2026Williams said inflation is 'absolutely too high' and that employers added 165,000 jobs in October ¹².

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<h2>Fed&#39;s Williams says inflation is &#39;absolutely too high&#39; as rate relief stays distant</h2> <p><em>By The GOP Files Kitchen-Table Desk. This article first appeared on <a href="https://thegopfiles.com/story/fed-s-williams-says-inflation-is-absolutely-too-high-as-rate-relief-stays-distant">The GOP Files</a> on Friday, November 6, 2026.</em></p> <p>John Williams, president of the Federal Reserve Bank of New York, said Friday that inflation remains too high after several shocks to prices. He spoke at a European Central Bank conference in Germany .</p> <blockquote><p>Inflation is absolutely too high. It&#39;s been too high for too long.</p><p>&mdash; John Williams, President, Federal Reserve Bank of New York</p></blockquote> <p>Williams said it is essential to bring inflation back to the Fed&#39;s 2 percent target in a timely way and on a sustained basis . He gave no signal about the next move on interest rates. He backed the Fed&#39;s view that officials should gather more information first .</p> <h2>Prices have been above target for years</h2> <p>Inflation has stayed above the Fed&#39;s 2 percent goal for five and a half years, The Hill reported. It has risen this year amid the Iran war .</p> <p>The war has pushed up U.S. energy prices because Iran has restricted shipping in the Strait of Hormuz, a key oil route . Williams also acknowledged that President Trump&#39;s import tariffs and the buildout of artificial intelligence (AI) have put pressure on prices .</p> <p>He described the economy as resilient in the face of those shocks. He pointed to a stable and solid labor market . Employers added a better-than-expected 165,000 jobs in October, the Bureau of Labor Statistics reported Friday .</p> <h2>Where interest rates stand</h2> <p>Fed officials raised interest rates by a quarter point in September. They held rates steady last week, leaving the federal funds rate at a range of 3.75 percent to 4 percent . That is the Fed&#39;s benchmark short-term rate, and it influences what banks pay savers and charge borrowers.</p> <p>The Federal Open Market Committee, the Fed panel that sets rates, meets again Dec. 8-9. Fed Chair Kevin Warsh said last week that holding rates would give officials time to evaluate incoming economic data .</p> <p>The day before Williams spoke, two other Fed officials, Hammack of the Cleveland Fed and Barkin of the Richmond Fed, each argued for gradual rate increases, one report said . Williams did not endorse that view.</p> <p>Williams said officials must consider where the economy is &quot;likely to be&quot; in the future, not just look backward . He noted that rate decisions work slowly. He said the full effect takes a year or two .</p> <h2>Why it matters</h2> <p>That matters most for people on fixed incomes. Higher prices for energy and groceries eat into Social Security checks and savings, and the Fed&#39;s top regional officials are not signaling that rate cuts are near .</p> <p>The pattern is that the Fed is managing a price problem tied partly to tariffs and the Iran war, both of which come from Washington&#39;s policy choices. Democrats, who won Congress this week, have said they will make affordability a priority. Williams&#39; remarks suggest the Fed will not solve that for them soon.</p> <p>What happens next: the Fed meets Dec. 8-9, and the next inflation report will show whether prices are cooling .</p> <p><em>Read the original, with every source linked, at <a href="https://thegopfiles.com/story/fed-s-williams-says-inflation-is-absolutely-too-high-as-rate-relief-stays-distant">thegopfiles.com</a>. Republished under The GOP Files' <a href="https://thegopfiles.com/republish">free republishing terms</a>.</em></p> <img src="https://thegopfiles.com/api/rp/fed-s-williams-says-inflation-is-absolutely-too-high-as-rate-relief-stays-distant.gif" alt="" width="1" height="1" style="border:0;width:1px;height:1px">

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Sources

1. The Hill, “Fed's Williams says inflation too high, targets 2 percent” (2026-11-06). thehill.com/business/6203854-fed-williams-inflation-too-high
2. ForexTraders, “Fed's Williams: inflation too high, no rate signal” (2026-11-06). forextraders.com/forex-news/feds-williams-says-inflation-too

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