Nick Timiraos, chief economics correspondent at The Wall Street Journal, reported on Tuesday, September 29, 2026, that New York Fed President John Williams delivered a clear message against an urgent rate hike. Timiraos quoted Williams saying, “With the policy action we took at our September meeting, there is no need for urgency, and we have time to gather more information. The accumulation of more data should provide greater clarity on the underlying trends in the economy and the associated risks to achieving our goals—and thereby the appropriate setting of monetary policy.”
Williams's remarks push back against market expectations that had recently priced an October rate increase above 50%, reaching as high as 70% in futures markets. Recent Gokhshtein coverage noted that Williams projects two percent GDP growth and a 2028 inflation target, while Fed Governor Barr indicated more rate hikes might be needed if inflation risks mount. The RBA also recently lifted its cash rate to 4.6%, the highest in 15 years, continuing its inflation fight.
Williams’s guidance implies that a pause in rate hikes is likely in the immediate term, allowing the Fed to assess incoming economic data. He did suggest that “one further upward adjustment of the federal funds target range may be appropriate late this year to support a timelier return of inflation to target,” but emphasized this was his forecast and dependent on future data. This suggests a cautious, data-dependent approach to monetary policy for the remainder of the year.
