Fed’s Williams says no rush after September hike

The New York Fed Governor John Williams said that he “sees no need for urgency after September rate hike,” a dovish statement that pushed the US Dollar Index (DXY) modestly lower, though it remains positive in the day.

Williams added that more data will help with future policy decisions, and that “if the economy meets expectations, one further hike is likely this year.” He stated that inflation would likely end at 3.5% this year and hit the Fed’s 2% goal by 2028.

Key highlights:

Sees ‘no need for urgency’ after September rate hike

More data will help the fed decide what’s next for rate policy

If economy meets expectations, one further hike likely this year

Fed will respond to data when setting monetary policy

Imperative to get inflation back to 2%

Fed must make sure high inflation does not become entrenched

Sees inflation at 3.5% this year, hit 2% target in 2028

Fed policy can make sure impact of supply shocks not long lasting

Sees us GDP at 2.25% this year, unemployment at 4% over 2027

AI investment issues are an increasingly big issue for inflation

Us economic momentum strong and may be strengthening