Williams says Fed may not have to hike rates in 2027, at odds with traders
New York Fed President John Williams sees one more rate hike in 2026 but no additional increase in 2027 as inflation pressures ease.
TL;DR
- New York Fed President John Williams believes one more rate hike is likely this year but no additional hikes are needed in 2027.
- His view contrasts with Fed funds futures traders, who are betting on at least one rate hike in 2027.
- Williams' forecast also differs from some FOMC members, though a majority of forecasters align with his outlook.
- He cited 'disinflationary forces at play' and expects inflation to come down significantly next year, nearing the Fed's 2% target by 2027.
- Williams noted that the economy is influenced by various factors, requiring continuous monitoring of data.