New York Federal Reserve President John Williams, a voter on the Federal Open Market Committee, said on Tuesday he sees disinflationary forces in the US economy and still views one more interest-rate hike as appropriate this year. He framed the case for a September move as starting from risk management, while describing the intended rate path as one aimed at maintaining a balanced economy. He also said he currently sees no need for a rate increase in 2027.
Assessment of Economic Forces and Interest Rate Outlook
Williams said there were no signs the labour market was contributing to inflation, and that he was not seeing broad price pressure beyond artificial intelligence and energy.
Focus on Technology-Related Inflation
He described AI as the inflation driver he is watching most closely, signalling a focus on technology-related price dynamics even as wider inflation pressures appear to ease.
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