Fed's Williams Calls Another 2026 Rate Hike "Reasonable"

New York Federal Reserve President John Williams said on September 24, 2026, that another U.S. rate hike before year-end is a reasonable expectation to contain inflation risks. Speaking at a National Institute of Economic and Social Research conference in London, Williams said market forecasts pointing to an additional increase "seem to me a reasonable way of thinking about it," while stressing the Fed would continue to monitor incoming data. The remarks follow the Fed's decision last week to raise its policy rate to the 3.75%-4.00% range under newly installed Chairman Kevin Warsh. Sixteen of 18 policymakers signaled the central bank would likely need at least one more hike before the end of 2026. Williams said the Fed would follow the same data-dependent approach it applied between its July and September meetings. Markets have priced in elevated odds of a further tightening as inflation pressures persist.