New York Federal Reserve Bank President John Williams stated that current U.S. monetary policy is appropriately positioned, but he sees no clear direction for future interest rate movements.

In an interview with Yahoo Finance on Wednesday, Williams said: "Monetary policy is in a good place. I don't see the need for a rate increase or a rate decrease right now; I also don't see a clear direction for where policy will go in the future."

This stance appears more hawkish compared to his remarks last week. On Thursday, at an economic conference in Reykjavik, Iceland, Williams had stated: "Policy is slightly restrictive at present. We are in a good position to continue watching how things evolve, including geopolitical developments and other data, before we need to make any decisions about adjusting rates."

The Federal Reserve has held interest rates steady so far this year. However, a debate is emerging among policymakers regarding the appropriate response to inflation, particularly as energy prices surge.

Several officials have warned that interest rate hikes may soon be necessary if shipping traffic through the Strait of Hormuz does not resume promptly.

The Fed's preferred inflation gauge rose 3.8% year-over-year in April, marking the largest increase since 2023. The current unemployment rate stands at 4.3%, a level some Fed officials consider close to full employment.

Federal Reserve policymakers are scheduled to hold their next meeting in Washington from June 16th to 17th, which will be chaired by the new Chair, Kevin Warsh.