New York Federal Reserve Governor John Williams agreed with the Federal Reserve's position in its recent statement that more information should now be accumulated to assess the risks faced by prices. Williams said at the ECB event in Frankfurt on Friday that inflation is “definitely too high,” but other indicators have not sent worrying signals so far. Monetary policy “does play a key role in ensuring that these relative price shocks do not turn into broader or more enduring inflation,” Williams said. “Inflation expectations are still well anchored. We are seeing wage growth in line with the 2% inflation target.” Federal Reserve officials kept interest rates unchanged last month and said “accumulating more information” would help determine the optimal level of policy. The Federal Open Market Committee decided to stay on hold with a 10-2 vote. Previously, it agreed to raise interest rates by 25 basis points in September to raise the benchmark interest rate target range to 3.75%-4%. Since the last meeting, many policymakers have indicated that further interest rate increases are still necessary, but advocated a gradual approach. Federal Reserve Chairman Kevin Walsh also previously pointed out that the US economy is strong and warned that inflation is continuing, but he still hasn't revealed his judgment on the interest rate outlook.

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