Fed's Williams sees no urgency for next Fed rate hike
TLT•New York Fed President John Williams said there is no need to rush another rate hike, though one further increase may be appropriate late this year. He expects inflation to end the year around 3.5% and return to the Fed’s 2% target in 2028.
1. Rate outlook
Williams said the Fed has time to weigh incoming economic data after its September rate increase, which raised the federal funds target range by a quarter percentage point to 3.75%-4%. If the economy follows his forecast, one further increase may be appropriate late this year, he said.
2. Inflation forecast
Williams said inflation could end the year around 3.5% and return to the Fed’s 2% target in 2028. He said price pressures should ease as tariff and energy impacts fade, while noting uncertainty around the Middle East conflict.
3. Growth and markets
Williams sees U.S. growth at 2.25% this year and unemployment at 4% next year. After his remarks, traders pared bets on an October rate increase to about even, the article said.
