LONDON, Sept 24 (Reuters) – New York Federal Reserve President John Williams said on Thursday it was reasonable to think that the U.S. central bank might need to raise interest rates again before the end of the year to help bring down inflation risks.
Forecasts among market participants showed investors thought “it’s likely that another rate hike may be appropriate by the end of the year. That seems to me a reasonable way of thinking about it,” Williams said.
“But we have to see. We’re going to collect the data and do what we did between July and September,” Williams told a conference in London organised by the National Institute of Economic and Social Research, a think tank.
The U.S. central bank under new Fed Chairman Kevin Warsh last week raised its policy rate to the 3.75%-4.00% range and 16 of 18 policymakers signalled the Fed would probably need to deliver at least one more rate hike before the end of 2026.
(Reporting by David Milliken Writing by William Schomberg)
