DBS Bank analyst says Williams supports interest rate hike, core CPI expected to slow down

DBS Bank analyst Philip Wee stated that Federal Reserve official Williams supports raising interest rates again before the end of 2026, and monetary policy will be guided by the inflation trajectory for the next 1-2 years. Today's core CPI is expected to slow down from 0.3% to 0.2%. Williams believes that price pressure is concentrated in the AI and energy sectors, and there is no evidence of labor market driven inflation or overheating of the US economy. (Source: Jin Shi) AI interpretation: The expected slowdown in core CPI reflects a structural easing of inflationary pressures, which provides data support for the Federal Reserve to maintain current interest rate levels. Williams' hawkish stance aims to anchor long-term inflation targets through expectation management to prevent premature pricing of loose policies in the market. The current price pressure is mainly driven by specific industries, rather than comprehensive inflation caused by economic overheating, which gives monetary policy greater operational space. This data performance will directly determine the market's reassessment of the timing of the Federal Reserve's policy shift and strengthen the sustainability of the high interest rate environment.