Fed sees no stagflation. US indices turn green 📈

John Williams from the Federal Reserve dismissed concerns about stagflation, while emphasizing that the Fed will place particular importance on ensuring that no one questions price stability in the U.S.

Williams added that inflation expectations are "well anchored," which stands in stark contrast to the continued rise in inflation expectation readings according to the University of Michigan (4.4%).

The University of Michigan report seems to reflect strong concerns about rising prices, possibly driven by broad 10% tariffs. Consumer sentiment has dropped to record lows, indicating growing tension and uncertainty among Americans.

At the same time, we’re seeing a modest rebound on Wall Street. The main indices have just moved out of the red and are trading slightly positive, while the Nasdaq is up by 0.5%.

Source: xStation5

6 January 2026, 2:22 PM

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Fed sees no stagflation. US indices turn green 📈

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