YEREVAN, July 10. /ARKA/. The President of the Federal Reserve Bank (Fed) of New York, John Williams, does not expect sustainable growth in energy prices for the remainder of the year, despite another escalation of conflict in the Middle East:
"Markets are still expecting a decline in oil prices over the next 6-12 months. I consider this scenario quite reasonable," Williams said at an event in New York:
He noted that fundamental factors indicate that energy prices are likely near their peak levels and will decrease over time:
Williams declined to make predictions regarding what decision the Federal Reserve will make on the key rate at the meeting on July 28-29, noting that the regulator has not yet begun to analyze the situation:
He pointed out that inflation in the U.S. is still "too high," while the labor market remains stable:
Williams believes that the impact of some factors on inflation may be less significant than previously expected, particularly regarding trade tariffs:
Additionally, he stated that the potential impact of rising energy prices on inflation may change depending on developments in the Middle East:
However, if high inflation persists significantly exceeding the Fed's forecasts, the regulator will have to respond accordingly:
He also noted that a boom in the AI sector could contribute to accelerating inflation if demand for these developments continues to outstrip supply:
Over time, the implementation of AI will lead to increased labor productivity:
