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[BUSINESS] · United States · 5 sources

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John Williams signals no urgent need for immediate Fed rate hikes

New York Federal Reserve President John Williams stated on Tuesday that there is no urgent need for further interest rate hikes following the central bank's September decision. Speaking at the University of Buffalo, Williams indicated that the Fed has sufficient time to gather economic data to clarify trends and risks before making subsequent moves.

Williams suggested that if economic conditions align with his projections, an additional rate hike later this year could be appropriate to ensure inflation returns to the 2% target. His remarks caused market expectations for an October rate hike to drop from 70% to approximately 50%.

In addition to Williams, other Fed officials signaled a cautious or hawkish stance. Fed Governor Michael Barr noted that monetary policy might still require adjustment to meet inflation goals, while Chicago Fed President Austan Goolsbee warned that persistent supply shocks could necessitate rate increases. St. Louis Fed President Alberto Musalem also characterized current policy as relatively loose. Williams specifically highlighted artificial intelligence demand and energy prices as significant factors influencing inflation outlooks.

Entities

Austan Goolsbee · Federal Reserve · Federal Reserve Bank of New York · John Williams · Michael Barr · University at Buffalo

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