Fed's Williams Says Next Rate Hike Can Wait, No Urgency

30 September 2026 · Source balance: Centre

Federal Reserve Bank of New York President John Williams said Tuesday that the central bank has time to weigh economic data before deciding when to raise interest rates again. He added that one more increase before the year ends may be appropriate if the economy continues as he forecasts, but emphasized there is no need to rush. The Fed raised rates a quarter percentage point earlier this month to 3.75 to 4 percent, its first hike since 2023. Williams cited persistent inflation linked to Middle East conflict, artificial intelligence investment, and tariff impacts as ongoing concerns. The Fed aims to return inflation to its 2 percent target. Williams' remarks prompted financial markets to reduce their expectations for a rate hike at the October meeting, though most Fed officials still expect at least one more increase before year-end.