Fed's Williams says more rate hikes are likely as inflation stays persistent
New York Fed President John Williams said on Thursday that the Fed will likely need to raise interest rates further to bring down inflation, Reuters reported.
Speaking at a UC Berkeley alumni event in New York, Williams said: "The economy is strong, labor market continues to strengthen, and inflation is persistent." He added: "We still have work to do … to get monetary policy to the right place."
Williams gave no timing for the next increase and no view on how high rates should go. As vice chair of the Federal Open Market Committee, the Fed's rate-setting body, he votes at every meeting.
His remarks follow a hot inflation report. Consumer prices rose 0.4% in October, and core prices, which leave out food and energy, rose 0.3% for a third straight month.
The Fed held its target range at 3.75% to 4% on October 28. Two officials, Lisa Cook and Beth Hammack, dissented in favor of a quarter-point hike.
Reuters reports that markets now expect a quarter-point increase at the December meeting and another one in January.
Fed officials remain divided over how quickly to raise rates. Waller has suggested that persistent core inflation could justify a half-point increase in December, while Cleveland Fed President Beth Hammack favors a more gradual approach to give the economy time to respond to higher borrowing costs.
Williams also addressed concerns about the rising cost of living, explaining that the Fed's goal is to slow future inflation, not reverse price increases that have already occurred. He warned that attempting to push prices back to earlier levels could cause serious economic harm, saying efforts to "put the genie back in the bottle" would create "huge distortions and damage to the economy."
The Fed's next policy meeting is scheduled for December 8–9. The November inflation report is due Thursday, December 10, one day after the Fed announces its rate decision.
Sources & Further Reading
- "Fed's Williams says central bank has 'work to do' to get inflation back on target." Reuters. November 12, 2026.
- "Consumer Price Index - October 2026." U.S. Bureau of Labor Statistics. November 10, 2026.
- "Federal Reserve issues FOMC statement." Federal Reserve. October 28, 2026.
This article was drafted with the help of AI. Aubrey Wood fact-checked, edited and published the article and is responsible for its accuracy and quality. How we use AI
