Fed rate hike 'not urgent', says John Williams; Austan Goolsbee warns against 'playing with fire'
Federal Reserve Bank of New York President John Williams stated there could be one more interest rate increase before year-end. He emphasized that the central bank is not in a hurry to act immediately as it awaits more economic data. Williams projected that inflation might end the year at approximately 3.5% before returning to the Fed's target by 2028.
Federal Reserve President John Williams stated that the timing for another rate hike is not urgent, as the central bank has time to assess incoming data before proceeding. He expects a possible rate increase before year-end, but emphasized that policymakers should not act with urgency. Meanwhile, Chicago Fed President Austan Goolsbee warned against the consequences of persistently high inflation, cautioning that prolonged above-target inflation risks requiring a policy response to address supply shocks.
Goolsbee described allowing inflation to remain above the central bank's target for 5½ years as "playing with fire," expressing concern that it could lead to entrenched inflationary disturbances and second-round effects on inflation.
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