Fed's Williams sees no urgency for next rate hike
- On Tuesday, Federal Reserve Bank of New York President John Williams stated the central bank has time to evaluate data before further rate hikes, though one more increase is likely before year-end.
- Following September policy actions, the Fed lifted its overnight target rate range to between 3.75% and 4% to combat persistent inflation pressures that have overshot the 2% target.
- Williams projects inflation ending this year around 3.5% and growth at 2.25%, with unemployment expected to reach 4% next year as price pressures gradually ease.
- While Futures markets anticipate an October rate hike, Williams pushed back, stating "with the policy action we took at our September meeting, there is no need for urgency."
- Inflationary pressures have worsened this year due to President Donald Trump's trade tariffs and surging energy prices tied to war in the Middle East, complicating the Fed's inflation-target return.
39 Articles
39 Articles
Williams Says the Fed Has Time. October Rate Hike Odds Fell Below a Coin Flip
One sentence from New York Fed President John Williams sent rate-hike odds tumbling, but two other Fed governors told a very different story about where policy is headed before year's end.
At the beginning of this month, the Fed raised the reference rates, which direct the borrowing costs, placing them between 3.75% and 4%. Higher rates mean more expensive credit, which pushes spending down and releases pressure on prices. "Given the policy decision we made at our September meeting, there is no urgent need to act and we have time to gather more information," said Williams, president of the Federal Reserve Bank of New York. "A furt…
Fed’s Barr signals more rate hikes as October odds fall to 50%
Federal Reserve Governor Michael Barr has renewed his call for further interest-rate increases to bring inflation down to 2%, while market odds of an October hike have fallen to about 50% from roughly 70%. Federal Reserve Governor Michael Barr said…
Fed rate hike 'not urgent', says John Williams; Austan Goolsbee warns against 'playing with fire'
Federal Reserve Bank of New York President John Williams stated there could be one more interest rate increase before year-end. He emphasized that the central bank is not in a hurry to act immediately as it awaits more economic data. Williams projected that inflation might end the year at approximately 3.5% before returning to the Fed's target by 2028.
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