Williams: The Federal Reserve can wait for data after raising interest rates in September, and may need to raise rates again within the year

New York Fed President Williams said that the Fed can wait for more data after raising interest rates in September. If the economic trend meets expectations, it may need to raise interest rates again this year to reduce inflation to 2%, but the decision depends on the data. Williams believes that inflation remains a policy priority and needs to be prevented from becoming persistent through the second round effect. He also points out that tariffs, energy price fluctuations caused by the Middle East conflict, and AI investment are sources of upward pressure on prices. Williams expects the US inflation rate to approach 3.5% by the end of the year and fall to the target by 2028, with GDP growth expected to be around 2.25% this year and an unemployment rate of around 4% next year. He also stated that immigration, aging population, and limited productivity growth limit long-term potential.