By Jessica Coacci

NEW YORK--New York Fed President John Williams said the current stance of monetary policy is well positioned to balance competing risks to the Federal Reserve's dual mandate, which he said have been heightened by the conflict in the Middle East.

"Right now, the future is difficult to see, and the risks to both sides of our mandate have increased," Wiliams said, according to a published text of his remarks.

Speaking in Midtown Manhattan on Monday, Williams said he expects inflation to remain elevated above the Fed's 2% goal for the next few quarters due to higher tariffs and energy prices.

In addition, he said, the Iran war has caused supply-chain disruptions, which he compared to other supply disruptions that the world economy experienced in 2021 as it emerged from the pandemic.

Meanwhile, the labor market has shown conflicting signs, Williams said. He noted that headline government data point to stabilization, while anecdotal indicators suggest continued gradual slowing.

"The extent and duration of the effects of supply disruptions and higher energy prices that are emanating from the Middle East conflict are key factors that will shape the global economic outlook," he said. "We simply can't know how this will play out."

Write to Jessica Coacci at jessica.coacci@wsj.com

(END) Dow Jones Newswires

May 04, 2026 12:50 ET (16:50 GMT)

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