No Urgency for Next US Interest Rate Hike, Says New York Fed President Williams

The Federal Reserve of New York's President John Williams has signaled that the next US interest rate hike may not be necessary until later this year. Speaking at the University at Buffalo, Williams stated that there is no 'urgency' to raise rates further following the Fed's recent increase by 25 basis points in September.

The current key interest rate stands between 3.75 and 4.00 percent, aimed at combating stubbornly high inflation. Despite this, Williams believes that if the economy evolves as he forecasts, another upward adjustment of the federal funds target range may be required late this year to support a return of inflation to its long-term two-percent target.

Williams is an influential voice on the Federal Open Market Committee (FOMC) and emphasized the need for time to gather more information before making further policy decisions. He pointed out that the Fed's dual mandate includes keeping inflation at or below two percent while ensuring maximum employment.