Williams Sees 1 More 2026 Fed Hike, No Additional 2027 Increase
Updated
Updated · CNBC · Oct 13
Williams Sees 1 More 2026 Fed Hike, No Additional 2027 Increase
3 articles · Updated · CNBC · Oct 13
Summary
John Williams said he still supports one more Fed rate increase this year but sees no need for additional hikes in 2027.
2% inflation is the basis for that view: the New York Fed chief said disinflationary forces remain intact, tariff effects have mostly passed through, and 2027 inflation should be near target.
3.4% PCE inflation in August — or 3% excluding food and energy — shows price pressures are still above goal, with Williams warning energy costs continue to lift headline inflation for now.
90% odds in Fed funds futures imply the policy rate will end 2027 at least 0.5 percentage point above today, putting Williams at odds with markets and some policymakers even as he aligns with the FOMC majority.