World Economy

Fed's Williams Signals End to Rate Hikes After 2026 Increase

New York Federal Reserve President John Williams said Tuesday he sees no need for additional interest rate increases beyond one more hike this year, putting him at odds with market expectations and some fellow policymakers. Williams, a permanent voting member of the Federal Open Market Committee, told Bloomberg News he maintains his view that one more rate increase may be appropriate. However, he doesn't anticipate further tightening in 2027. Fed futures traders are pricing in at least a 90% probability of additional rate hikes next year. Among the 18 FOMC members who provided 2027 forecasts, eight project one more increase after this year's additional hike. Williams said the Fed must monitor underlying inflation trends, noting that the economy is affected by many different influences and the central bank must keep watching the data. The Fed raised rates in September for the first time since 2023 and is expected to vote again this month and in December.