Federal Reserve's Williams: If inflation does not return to 2% as expected, the Federal Reserve will take action

Federal Reserve's Williams expressed strong support for the FOMC's latest interest rate decision and reiterated the commitment to restoring inflation to the 2% target level. If inflation does not decline to 2% as expected, the Federal Reserve will take action to achieve price stability.

Additionally, Williams stated that the impact of the Middle East conflict on inflation is expected to gradually weaken, but he acknowledged that there is still uncertainty in the situation. He also pointed out that market pricing provides valuable information to the Federal Reserve, but the Federal Reserve does not need to agree with the market pricing levels.

Furthermore, he believes that investments in artificial intelligence will not pose risks to financial stability and is not surprised by the volatility in the AI industry.