Fed’s Williams Signals One Final Rate Hike in 2026, No Further Increases in 2027

• Fed’s Williams expects one more rate hike in 2026, none in 2027.
• Cites disinflationary forces and labor market not driving inflation.
• US Treasury yields edged lower following his dovish comments.

New York Federal Reserve President John Williams stated on Tuesday, April 7, 2026, that he anticipates one more interest rate hike will be appropriate this year (2026), but does not expect any further increases in 2027. Williams, a voting member of the Federal Open Market Committee, highlighted that disinflationary forces are at play and sees no evidence of the labor market contributing to inflation, projecting inflation will approach the Fed’s 2% target next year. He noted that AI and energy are the primary inflation drivers he is monitoring, rather than broad price pressures. Following his remarks, US Treasury yields saw a modest decline, with the 10-year yield down 2.7 basis points and the 30-year yield down 3.7 basis points, as his outlook reportedly diverged from some market expectations.