New York Federal Reserve President John Williams said Wednesday that inflation has peaked and the current interest rate stance is well positioned to bring it down. He expects overall inflation to decline to around 3.25% by year-end and reach the 2% target by 2028. Williams cited easing tariff impacts, a likely peak in oil prices after the U.S.-Israel attack on Iran, and receding imbalances from AI investment as factors. He also noted that the labor market is not a source of inflation and that expectations remain well-anchored. Despite his outlook, markets still anticipate a rate hike as soon as September, and a narrow majority of FOMC members in June penciled in a quarter-point increase by year-end.