New York Fed President Says Rate Hikes Unnecessary Next Year as Inflation Expected to Slow Sharply

New York Fed President John Williams said he still believes one more rate hike this year is appropriate, but currently sees no need for further hikes next year. Speaking at the New York Fed on Tuesday, Williams stated: 'I have not changed my view that one more rate increase may be appropriate; after that, I currently expect no further action.' Williams noted that signs indicate inflation will slow 'significantly' as the impacts of tariffs and energy price shocks fade, approaching the Federal Reserve's 2% target next year. Combined with other indicators showing core cooling, he believes this should help offset price pressures from AI infrastructure development. (Sina Finance)