New York Fed President John Williams said the Federal Reserve does not need to move quickly after its September rate increase and can wait for more economic data before deciding its next policy step. He said another increase in the federal funds target range may be needed before year-end if the economy evolves broadly in line with his expectations, though he stressed that this was only his personal forecast and that any final decision would depend on incoming data. Williams said inflation pressures remain the main focus for monetary policy as long as growth stays solid and the labor market holds up. He also said the Fed must prevent inflation from staying elevated after shocks and avoid second-round inflation effects. According to Williams, inflation this year has been affected by Trump tariff policies and higher energy prices linked to conflict in the Middle East, while investment tied to artificial intelligence has also added some price pressure. He expects U.S. inflation to reach about 3.5% by the end of this year, then ease gradually and return to target in 2028. He also projected U.S. growth of about 2.25% this year and an unemployment rate of about 4% next year.
According to BlockBeats on Sept. 30, New York Federal Reserve President John Williams said the Federal Reserve does not need to rush into another move after its September rate hike and can wait for more economic data before deciding the next policy step.
Williams said another increase in the federal funds target range may be needed before the end of the year if the economy develops broadly in line with his expectations, in order to bring inflation back to the 2% target more quickly. He added that this was only his personal projection, and any final decision would depend on future data.
He said inflation pressures would remain the main focus of monetary policy as long as economic growth stays solid and the labor market remains in good shape. The Fed, he said, must make sure inflation does not stay high after shocks and must avoid second-round inflation effects.
Williams said inflation pressures this year were affected by Trump tariff policies and by higher energy prices caused by conflict in the Middle East. He also said investment related to artificial intelligence had added some price pressure.
He expects U.S. inflation to reach about 3.5% by the end of this year, then decline gradually and return to target in 2028. He also expects U.S. economic growth of about 2.25% this year and an unemployment rate of about 4% next year.
Williams added that immigration factors, population aging, and limited productivity growth are constraining the long-term growth potential of the U.S. economy.
The report cited Jin10 as the source.
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