Fed's Williams: One More Rate Hike Possible This Year, No Need Seen for 2027

PANews, October 14 - According to Bloomberg, New York Fed President John Williams said in an exclusive interview with Bloomberg that one more rate hike this year could still be appropriate, but there is currently no reason to believe further hikes will be needed in 2027. Williams expects inflation to slow noticeably next year and approach the 2% target as tariff and energy price shocks fade, which should help offset price pressures from AI infrastructure investment; the U.S. economy is not overheating overall, and the labor market is not generating inflationary pressures. Treasury yields edged lower following his remarks. Markets currently price in a Fed rate hike in December and two more hikes in 2027. The U.S. September CPI data is due on October 14, and the Fed's policy meeting is scheduled for October 27-28.