Williams Hints at Another US Rate Hike to Combat Inflation Risks

New York Federal Reserve President John Williams has hinted that another US interest rate hike is possible before the end of this year to combat inflation risks. In a speech in London, he acknowledged that market participants expect 'it's likely that another rate hike may be appropriate by the end of the year.'

This comes after the Fed raised its policy rate last week to 3.75%-4.00%, with 16 out of 18 policymakers signaling at least one more increase before December.

Williams stressed the high levels of uncertainty surrounding the economic outlook, but noted that inflation poses a 'big challenge' for policymakers seeking to balance growth and price risks. He emphasized that achieving an annual inflation rate of 2% in a timely manner is crucial.