Fed's Williams pushes back hitting 2% inflation target from 2027 to 2028

Reiterates monetary policy ‘well positioned’ for current economy. Expects inflation to moderate to 3.5% this year. If Middle East war disruptions resolved soon, will lower inflation pressure. Expects inflation pressures to moderate. Thus far US has been resilient against war economic impact ‘Imperative’ Fed get inflation back to 2% target. Sees US growing at 2.25%, unemployment down to 4% in 2028. Standing Repo operations key tool to cap interest rate pressure. Fed will adjust reserve management buying as needed. Middle East war continues to contribute risks and uncertainties. Job market has proved to be resilient "In coming quarters, however, I expect inflation readings to edge down" for several reasons:  First, tariff effects "appear to have mostly played out."  Second, a base case is that Hormuz related supply disruptions "are resolved relatively soon.  "Third, housing inflation should continue to slow.  Fourth, there's no evidence of labor-market driven price pressures.