Fed's Barr: Progress made on inflation, but still work to do

*FED'S WILLIAMS: NATURAL RATE OF INTEREST IS HARD TO PIN DOWN *NEW YORK FED'S JOHN WILLIAMS SPEAKS AT EVENT IN FRANKFURT Fed's Williams: Model-based US neutral rate estimates are around 1%, the bond market suggests higher neutral rate, but I would discount that.

BoE Gov. Bailey: The latest inflation data is good, but we need more evidence. BOE'S BAILEY SAYS TALKS WITH FARAGE 'CORDIAL,' INTEND TO SERVE OUT TERM BOE'S BAILEY SAYS AI COULD BE NEXT PRODUCTIVITY 'DIAL MOVER' OR A BUBBLE BoE Gov. Bailey: We have to watch AI valuations very carefully. BOE'S BAILEY SAYS NOW SEE INFLATION RISKS AS 'MORE BALANCED'

FED’S HAMMACK: 'NOT OBVIOUS' U.S. CENTRAL BANK SHOULD CUT INTEREST RATES AGAIN GIVEN INFLATION Fed's Hammack: It will take two to three years to get inflation back to 2%. FED'S HAMMACK: MONETARY POLICY IS 'ONLY BARELY RESTRICTIVE, IF AT ALL' Balancing Act: The Dual Mandate on an Economic Tightrope My thanks to the Economic Club of New York for inviting me to speak today and to Bill Dudley for moderating what I’m sure will be an engaging discussion. As many of you know, I lived and worked in New York for 30 years before moving to Cleveland to begin my new role at the Federal Reserve. I love Cleveland, and I love talking with friends and neighbors about all the great things to see and do in Northeast Ohio. But I have to chuckle when the topic turns to Cleveland traffic, which is nothing compared to the endless gridlock that I experienced in Manhattan—before congestion pricing kicked in, of course. Some of you might be thinking, just take the subway! If only the decision were that simple. When I lived in New York, I faced the daily debate about the comfort of a cab or the certainty of subway timing. But even once in the subway, I faced the maddening choice: do I jump on the local 1 train pulling into the station or wait for the express 3 train that says it’s four minutes away? Getting around New York is a balancing act to optimize every second of every day, and right now a balancing act feels like the perfect metaphor for monetary policy: If the economy is a tightrope, policymakers are tasked with walking a fine line to keep our dual mandate goals of maximum employment and price stability in balance. Today I’m going to talk about why I believe policy should be at a mildly restrictive setting to strike the right balance between our goals. But let me stress the “I” part of that sentence and indicate, as always, that these are only my views and not necessarily those of the Federal Reserve System or of my colleagues on the Federal Open Market Committee (FOMC).