Federal Reserve Bank of New York President John Williams said he anticipates inflation will continue to slow toward the central bank’s 2% goal, but warned policy-related uncertainty clouds the economic outlook.

The US Federal Reserve is in a strong position to weather the "highly uncertain" economic outlook, but its inflation fight will take time to win, a senior US central bank

This week’s forthcoming Consumer Price Index report could show easing year-on-year inflation, increasing the potential for Fed interest rate cuts in May or June 2025.

Faced with the threat of rising inflation, the U.S. Federal Reserve will wait until next quarter before cutting rates again, according to a majority of economists in a Reuters poll who previously expected a March cut.

Inflation proved stubborn in 2024, a trend that probably extended into the new year and could complicate President Donald Trump ’s policy ambitions. A key gauge of inflation — the consumer price index — is expected to show Wednesday morning that prices rose by 2.9 percent in January from a year earlier, according to economists’ forecast.

The U.S. public’s near-term inflation expectations were largely stable in January, a Federal Reserve Bank of New York report found, as respondents to the survey also predicted a notable softening in future spending plans.

Federal Reserve Bank of Cleveland President Beth Hammack said it’s appropriate to keep interest rates steady for “some time” while policymakers await further downward progress on inflation and analyze the economic effects of new government policies.