Federal Reserve Bank of New York President John Williams said on Thursday he does not see a need right now for the central bank to weigh any change in interest rate policy amid the uncertainty created by the Middle East war.
Monetary policy is in a "good place" right now, the official said in New York.
"I don't see there's any reason at all to raise rates right now or lower rates right now," Williams said.
The central banker spoke before a gathering held by the Conference of Business Economists and largely reiterated comments made in a series of recent remarks.
He said keeping inflation expectations steady is important and while it is not surprising short-term expectations have risen, longer-term projections have been stable, which is a good thing.
Williams said he believed much of the impact on inflation from tariffs had already happened, but he was watching to see how price pressures develop.
With inflation expectations holding in and the job market not pushing price pressures up, "we're not seeing...unusual second-round effects or persistent effects. But we just have to keep watching," the official said.
Williams also said the strength of the stock market was not a surprise given what investors think about the economy's outlook.
"There is optimism about higher productivity growth going forward, partly AI and other things," Williams said. "It's not surprising that the stock market's high" given how "bullish" people are about the future of the economy.
Investors currently expect no change in what is now a federal funds target rate range of between 3.5% and 3.75% over coming months.
The Middle East war has caused price pressures to spike, but it is unclear how long those pressures will persist given the unresolved nature of the conflict.
