Inflation is expected to approach the Fed's 2% target in 2027 as tariffs and energy shocks fade, Williams said. Although he noted that demand for AI infrastructure is inflating construction costs and chip prices, he believes AI productivity gains will eventually reduce inflation. He added that the path for 2027 is not yet certain, noting that officials will have to see how conditions evolve.
Wednesday, October 21, 2026
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NY Fed's Williams Forecasts Only One Rate Hike Through 2027
US Markets8 days ago
New York Fed President John Williams indicated in a Bloomberg interview that a last interest rate increase may be warranted before the end of this year. Williams currently finds no need for further rate hikes in 2027, a position that diverges from market pricing which accounts for a December hike followed by two more in 2027. He stated the broader economy is not overheating and labor markets remain stable.
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