Key facts
- New York Fed President John Williams expects inflation to ease.
- Williams stated the Federal Reserve is prepared to raise interest rates if inflation does not moderate.
- A Federal Reserve survey found lending standards for commercial and industrial loans remained largely unchanged in the second quarter.
- Demand for commercial and industrial loans increased from large and middle-market firms.
- Banks reported mixed changes in lending standards and weaker demand for household loans, including residential real estate.
New York Fed President John Williams anticipates that inflation will ease, but emphasized that the Federal Reserve remains prepared to increase interest rates if inflation does not moderate as expected. In an interview, Williams noted that the inflationary effects of tariffs have largely passed through the U.S. economy.