Williams Sees One More Rate Hike Enough to Tame Inflation

Federal Reserve policymakers may only need to deliver one more rate hike this year to get inflation back on track, according to New York Fed President John Williams. Speaking at the University at Buffalo, Williams said that with the policy action taken at their September meeting, there is no need for urgency.

Williams emphasized the importance of containing inflation and urged caution against letting adverse inflationary disturbances become entrenched. He sees inflation ending the year around 3.5%, as price pressures ease next year on the way toward getting inflation back to target in 2028.

The Fed's decision to raise interest rates by a quarter percentage point to 3.75%-4.00% two weeks ago had sparked expectations of another rate hike this year, but Williams' comments have tempered those bets. Financial markets now price for a single interest-rate hike this year, most likely at the Fed's mid-December meeting.