US Federal Reserve’s Williams sees one more interest rate hike in late 2026
But he said there was no urgency to act following the Fed's decision to lift rates this month.
Federal Reserve Bank of New York President John Williams suggested another interest rate hike could be necessary by late 2026 to curb inflation, decreasing expectations for a rate increase in October just before the US midterm elections. Williams stated there was no urgency to act following the Fed's decision to raise rates earlier in the month, emphasizing that the economy would need to evolve as forecasted for the extra adjustment.
The probability of a rate hike at the upcoming Oct 27-28 meeting fell to about 50% from 70%. As a key Fed official, Williams' views carry significant weight, being a permanent voter and vice-chair of the Federal Open Market Committee. His focus on AI as a key driver of inflation and a question mark in its impact added uncertainty.
Despite concerns, Williams noted that inflation remains at 3.5% this year, with expectations it will slow to just above the 2% target in 2027 and reach the 2% goal by 2028.
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- Fed's Williams sees no urgency for next rate hike channelnewsasia.com
- US Fed’s Williams sees no urgency for next rate hike businesstimes.com.sg
