NY Fed President Williams sees no need for a rate hike in 2027
At a recent conference, John Williams from the Federal Reserve Bank of New York expressed optimism about a potential interest-rate increase this year, suggesting inflation could hit the 2% goal by next year. He cited the role of artificial intelligence in affecting inflation rates while also addressing the sector's supply-demand imbalance.
Fed President John Williams stated on Tuesday that he believes one more interest-rate hike is appropriate for this year, but does not foresee a need for another rate increase in 2027. Williams indicated that inflation will likely slow down and approach the Federal Reserve's 2% target next year, despite the ongoing impact of infrastructure development for artificial intelligence.
US Treasury yields decreased following Williams' comments, particularly those on two-year notes, which are most sensitive to the Federal Reserve's rate path. Williams' remarks mirror the median projection made by other Fed officials after their rate hike decision in September. However, some of his colleagues, such as Cleveland Fed President Beth Hammack and Dallas Fed President Lorie Logan, are convinced that more than one additional rate increase will be required to bring inflation back to the 2% target.
Williams stressed the significant uncertainty surrounding his outlook and continued to closely monitor the effects of artificial intelligence on inflation.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 4 other outlets
- NY Fed president doesn't expect any more rate hikes after this year's final move qz.com
- Williams says Fed may not have to hike rates in 2027, at odds with traders cnbc.com
- NY Fed's Williams sees one more rate hike this year, none in 2027 seekingalpha.com
- Fed’s Williams currently sees no need for rate hike in 2027, Bloomberg News reports investing.com
