New York, 14 October 2026 – Federal Reserve Bank of New York president John Williams has kept the door open to one more United States interest-rate increase this year while saying he currently sees no reason for a further rise in 2027. His distinction gives investors a clearer near-term signal without removing the uncertainty surrounding inflation, energy costs and artificial-intelligence investment.
Williams said an additional increase may be appropriate after policymakers raised rates by a quarter percentage point in September. He firmly supported that move after higher fuel costs and a more persistent energy shock changed the short-term inflation picture. Even so, he continues to expect inflation to slow substantially towards the Federal Reserve’s 2% target during 2027.
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