Williams: Current monetary policy is appropriate, future interest rate direction unclear

According to the Federal Reserve's Williams, the current monetary policy setting is completely appropriate and there is no need to adjust interest rates, but there is no clear direction for future interest rate trends. This year, the Federal Reserve has kept interest rates unchanged, but the surge in energy prices has sparked policy divergence. Some officials have warned that if shipping issues in the Strait of Hormuz continue, interest rates may need to be raised. The inflation indicator favored by the Federal Reserve rose 3.8% year-on-year in April, the largest increase since 2023, and the unemployment rate remained at 4.3%, close to full employment level.