New York Fed President WILLIAMS said the Fed can wait for more data after a
September hike and does not need to move again immediately. He said if the
economy evolves roughly in line with his view, the federal funds target range
may need one more increase before year-end to help bring inflation back to 2%,
but stressed this is his personal forecast and decisions will remain
data-dependent. WILLIAMS warned inflation remains the policy priority and must
be prevented from becoming persistent via second‑round effects. He flagged
tariffs, the Middle East conflict-driven energy price moves and AI investment as
sources of upside price pressure. He expects US inflation near 3.5% at year‑end,
then gradually falling to target by 2028, projects about 2.25% GDP growth this
year and roughly 4% unemployment next year, and said immigration, aging and
limited productivity growth constrain longer‑term potential.
