Fed's Williams: One more rate hike this year may be appropriate; sees no need for hikes in 2027 for now

PANews reported on October 14, citing Bloomberg, that New York Fed President John Williams said in an exclusive interview with Bloomberg that he still believes one more rate hike this year may be appropriate, but there is currently no reason to think further hikes will be needed in 2027. Williams expects inflation to slow markedly next year and approach the 2% target as tariff and energy price shocks fade, which would help offset price pressures from AI infrastructure investment; the U.S. economy overall is not overheating, and the labor market is not creating inflationary pressure. Treasury yields edged lower after his remarks. The market currently expects the Fed to hike in December and to hike twice more in 2027. U.S. September CPI data will be released on October 14, and the Fed will hold its policy meeting on October 27-28.