Fed divided: Goolsbee warns inflation still too high, Williams expects price pressures to ease

Chicago Federal Reserve Bank President Austan Goolsbee told CNBC that US inflation remains well above the 2% target and declined to speculate about the future path of interest rates. In contrast, New York Fed President John Williams offered a more optimistic outlook, suggesting that price pressures should gradually diminish over the coming quarters. The divergence between Fed officials adds to uncertainty in bond and equity markets, making it harder for investors to pinpoint when an easing cycle might begin. Elevated US rates continue to support the dollar and weigh on emerging market currencies. For private investors, the key takeaway is that a prolonged period of restrictive Fed policy dampens global risk appetite and raises the bar for equity valuations.