NY Fed President WILLIAMS says some 'technical factors' distorted November's CPI reading downward

Saturday, December 20, 2025 -New York Federal Reserve President John Williams has raised concerns that November’s Consumer Price Index (CPI) may not fully reflect the true pace of inflation. 

According to Williams, certain “technical factors” temporarily pushed the reading lower, suggesting that the apparent slowdown in inflation could be misleading. This comes as markets and policymakers closely watch inflation trends to gauge the future path of interest rates.

Williams emphasized that while headline CPI numbers appeared favorable, underlying inflation pressures remain persistent, particularly in services and core goods. He warned that relying on the November data alone could create a false sense of security, potentially affecting monetary policy decisions. 

Economists note that supply chain adjustments, seasonal factors, and short-term statistical anomalies can temporarily skew inflation readings, but these do not necessarily signal a long-term trend.

The remarks have added urgency to discussions on U.S. monetary policy, with investors reconsidering expectations for the Federal Reserve’s rate decisions in the coming months. 

Williams’ statement highlights the complexity of interpreting inflation data in real time and signals that policymakers remain vigilant against persistent price pressures. As consumers and businesses navigate these economic signals, attention is turning to December’s CPI release for a clearer picture of the inflation trajectory.