John Williams, president of the New York Fed, said he still believes one more rate hike would be appropriate this year, but he expects no need to raise rates next year. In an interview at the New York Fed on Tuesday, he stated that his view remains unchanged—no further action is needed after one rate hike. Williams noted that there are signs indicating that inflation will slow 'significantly' next year as the impacts of tariff and energy price shocks wane, potentially approaching the Federal Reserve's 2% target. Combined with other signs showing a cooling in core inflation, he believes this could offset price pressures stemming from AI infrastructure construction.
