No 'urgency': Fed signals next US interest rate hike could wait until later this year
No 'urgency' to raise US interest rates immediately, says key Fed official
The Federal Reserve has signaled that a further interest rate hike may not be necessary in the near future, according to New York Fed President John Williams. While the central bank raised the key interest rate by 25 basis points at its September meeting to combat high inflation, Williams stated that additional increases are not urgent and can wait until later this year.
He added that if the economy aligns with his forecast, a single rate hike may be appropriate to bring inflation back to the two-percent target while maintaining maximum employment. The Fed's dual mandate includes keeping inflation in check and ensuring full employment, but despite efforts, inflation has not reached the target and has resumed rising in early 2025.
Inflation's surge is attributed to US President Donald Trump's actions, including his war on Iran, which has driven up energy prices, as well as Trump's tariff policies and the ongoing AI boom that has increased demand for goods and services.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
