Fed's Williams Says No Rush for Another Rate Hike This Year
New York Fed President John Williams told a Buffalo university audience that the central bank can wait before deciding on a next rate increase, though one more hike may come before year-end.
At a speech in Buffalo, New York Fed President John Williams said the Federal Reserve does not need to act urgently on interest rates after the September decision that lifted the target range to 3.75-4 %. He indicated that the board will watch new economic data and may implement one more upward adjustment late this year if conditions align with his outlook. His remarks tempered market expectations for an October hike, which had been priced in heavily.
Williams highlighted the need to bring inflation back to the 2 % goal and to keep second-round effects in check, noting that robust growth and a solid labor market keep price pressures front-and-center. He projected inflation around 3.5 % by year-end and a gradual decline toward the target by 2028, assuming no major shocks from the Middle-East conflict or energy prices. The Fed continues to raise rates to combat inflation that has exceeded its target for over five years.
Why it matters
The Fed's stance influences borrowing costs and inflation expectations for households and businesses.
In this story
