Williams says another rate hike may happen this year, inflation rate projected at 3.5%

The President of the Federal Reserve Bank of New York (who holds a permanent FOMC voting right and is regarded as the third most powerful figure at the Federal Reserve), Williams, stated that if the economy performs as expected, there might be one more interest rate hike this year; emphasizing that it is crucial to bring inflation back to the 2% target level. He also mentioned that after the September rate hike, “there is no need to rush to act.” The Federal Reserve’s policies can ensure that supply shocks do not persist in the long term; it is expected that US GDP will grow by 2.25% this year, with the unemployment rate reaching 4% by 2027; inflation is expected to be 3.5% this year, achieving the 2% target by 2028.