Fed's Williams: Inflation high, labor market cooling, and support for interest-rate increase.

Federal Reserve Bank of New York President John Williams said that inflation is still at problematic levels and the U.S. central bank will act to lower it, in comments that noted recent stress in the banking sector will likely weigh on economic activity. Williams said that the banking sector stress that started last month and has resulted in extensive Fed emergency lending to banks seems to be cooling off. He also said that it would be likely this borrowing declines as banking sector conditions further stabilize.