Fed's Williams will support rate hikes if monthly core inflation runs above 0.2% on average

Fed’s Williams will support rate hikes if monthly core inflation runs above 0.2% on average centers on what Chicago Fed President Austan Goolsbee? (article says Williams) indicated would make him back rate increases. The piece says Williams stated that he would support rate hikes if monthly core inflation averages above 0.2%, and that he is especially concerned about demand pressures tied to AI-fueled activity. He said the Fed can look through temporary energy price shocks and tariff-related increases, but would not ignore a sustained demand impulse. The article points to a crucial U.S. CPI report due tomorrow that could raise the probability of a July move. It cites a 33% chance of a hike in July and 70% in September, noting Core PCE has averaged 0.34% this year versus Williams’s benchmark. It also mentions dissenters could appear if CPI surprises higher.