Williams told Bloomberg News his view aligns with the median September projection, and that he expects inflation to slow quite a bit toward the 2 percent target next year as tariff and energy price shocks fade, even as AI buildout spending adds price pressure he says he is watching closely. Two-year Treasury yields edged lower after the remarks, erasing an earlier rise of as much as three basis points, while futures pricing still anticipates a December hike and two more in 2027. His stance sets him against colleagues including Cleveland’s Beth Hammack and Dallas’s Lorie Logan, who have said more than one additional move will likely be needed to return inflation to target.
Williams sees one more hike this year, none needed in 2027
New York Fed President John Williams said on Tuesday that one more rate hike may be appropriate this year, but that he sees no reason the Fed will need to raise rates again in 2027.
Why it matters: Williams, a permanent voter and part of the Fed leadership, is pushing back against futures pricing that anticipates a December hike plus two more in 2027, and his view lands one day before the September CPI report that will test it.
Data as of Tuesday, October 13, 2026. The Bloomberg News interview report, carried by Financial Advisor Magazine, was opened and read in full; Reuters and CNBC carried the same remarks. Developing item, 2 to 3 sentences by design.
Sources
- Fed's Williams Sees No Need For Rate Hike In 2027 · Bloomberg News, via Financial Advisor Magazine · 2026-10-13
- Fed's Williams currently sees no need for rate hike in 2027, Bloomberg News reports · Reuters, via SRN News · 2026-10-13
- Williams says Fed may not have to hike rates in 2027, at odds with traders · CNBC · 2026-10-13