Bloomberg Surveillance · Tuesday, July 7, 2026
Michael Dart expresses optimism about inflation, citing Fed President John Williams' view that current monetary policy is appropriate. He points to muted longer-term inflation expectations in the bond market, even through the oil shock, as evidence that investors anticipate inflation rates will decrease as supply-side disturbances resolve and nominal growth remains moderate.
“You know, a few weeks ago, FED President John Williams I thought gave a really important speech when he talked about the fact that, you know, current settings for monetary policy looked about right to bring inflation back to target.”
“But keep in mind that if you look at the bond mark it right now, longer term inflation expectations are very muted, and they stay muted through the oil shock, and that's based on investors putting their money on the line.”
“So as long as they're keeping nominal growth moving in a moderate positive direction, I think these inflation rates are going to come down on the headline level. I think, you know, we look out over the next few quarters, we're going to see a pretty significant disinflation there.”