New York Fed’s Williams Sees No Urgency for Another Rate Hike, Citing Easing Inflation Shocks
- Williams: Inflation tempering, “no urgency” for rate hike.
- USD dips on NY Fed’s “no urgency” signal.
- NY Fed’s Williams sees one more hike as “reasonable” if data permits.
- Economy resilient; Fed targets 2% inflation by 2028.
New York Federal Reserve President John Williams stated on Thursday that it is “reasonable” to anticipate another interest rate increase by the end of the year, provided the economy evolves as expected. Williams emphasized that while inflation remains the primary obstacle to the Fed’s 2% target, which he projects to be reached by 2028, there is “no urgency” for immediate action following the recent rate hike. He noted the US economy’s “remarkable resilience” and projected GDP at 2.25% for this year and unemployment at 4% by 2027. Williams underscored that future policy decisions would be data-dependent, with more information helping guide the Federal Open Market Committee. The comments, particularly the lack of urgency, reportedly led to a modest dip in the US Dollar Index (DXY).
New York Fed President John Williams stated that inflation should temper as the “biggest shocks” have largely passed, noting the September rate hike aimed for a swifter return to 2% inflation. Williams also conveyed a message of “no urgency” for another rate hike, which led to a modest dip in the US dollar index. He reiterated that price stability is foundational for the economy.