Fed’s Williams says Middle East war will drive up inflation

By Michael S. Derby

April 7 (Reuters) – Federal Reserve Bank ‌of New York President ‌John Williams said Tuesday the ​Middle East war energy shock will drive up overall inflation over the course of ‌this year, ⁠while reiterating monetary policy is in the ⁠right place to deal with what happens in the ​economy.

The war ​impact “will ​directly go into ‌headline inflation because energy prices are an important component of that,” Williams said in an interview on Bloomberg’s ‌television channel. “I expect ​headline inflation to ​actually ​be elevated, you ‌know, in the middle ​of ​this year” and come in at around 2.75% for ​the ‌year, he added.

(Reporting by ​Michael S. Derby; Editing by ​Chizu Nomiyama)