Fed's Williams sees no urgency for next rate hike

Federal Reserve policymakers probably only need to deliver one more rate hike this year to get inflation back on track to the US central bank's 2 per cent goal, says New York Fed President John Williams.

John Williams, New York Fed president, speaks at an event in New York, US, on Nov 6, 2019. (File photo: Reuters/Carlo Allegri)

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BUFFALO: Federal Reserve policymakers probably only need to deliver one more rate hike this year to get inflation back on track to the US central bank's 2 per cent goal, New York Fed President John Williams said on Tuesday (Sep 29), in what amounted to a pushback against mounting expectations for earlier policy tightening.

“With the policy action we took at our September meeting, there is no need for urgency,” Williams said at the University at Buffalo, in Buffalo, New York. Watching incoming data before deciding what's next “should provide greater clarity” on how the economy is performing, Williams said.

“If the economy evolves in a manner broadly consistent with my forecast, one further upward adjustment of the federal funds target range may be appropriate late this year to support a timelier return of inflation to target,” Williams said, while adding “that is just my forecast, and time — and the totality of the data — will tell”.

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