John Williams Says No Urgency for Immediate Rate Hike

Federal Reserve Bank of New York President John Williams stated on September 29 that the U.S. central bank does not need to hike interest rates immediately following its September meeting. Speaking at the University of Buffalo, Williams indicated that the Fed has time to analyze incoming economic data, a position that contradicts futures markets pricing in a rate hike for October.

Williams noted that one further upward adjustment of the federal funds target range may be appropriate late this year to support a return to the 2% inflation target. He attributed current price pressures to energy prices linked to Middle East conflicts, artificial intelligence investment, and previous trade tariffs under President Donald Trump.

Looking ahead, Williams forecasts that inflation will end the year at approximately 3.5%. He projects economic growth of 2.25% for this year and expects unemployment to reach 4% by next year.