Fed's Williams sees no urgency for next Fed rate hike
TLT•New York Fed President John Williams said the Fed can assess incoming data before deciding on another rate increase, though one more hike may be appropriate late this year. He sees inflation ending the year around 3.5% and returning to the Fed's 2% target in 2028.
1. No urgency to hike
Williams said the Fed’s September rate increase means there is “no need for urgency” and that weighing incoming data should provide greater clarity before the next decision. He said one further increase may be appropriate late this year if the economy evolves as he expects.
2. Inflation outlook
Williams said inflation could end the year around 3.5%, ease next year and return to the Fed’s 2% target in 2028. He also forecast 2.25% economic growth this year and a 4% unemployment rate next year.
