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New York Fed Chief Hints at Another Rate Hike by Year-End, Markets React
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CNBC TV18•24-09-2026, 19:31
New York Fed Chief Hints at Another Rate Hike by Year-End, Markets React
- •New York Fed President John Williams stated that another interest rate increase by the US Federal Reserve before year-end would be ‘reasonable’.
- •Williams emphasized that the central bank would assess incoming economic data before making a decision on further rate hikes.
- •Markets have significantly raised their expectations for another rate hike, with CME Group’s FedWatch tool showing a 77.5% probability for October.
- •The Fed recently raised its benchmark interest rate by 25 basis points, setting the federal funds target range at 3.75%-4%.
- •Inflation remains above the Fed’s 2% target, and recent economic data indicates firm US economic activity, suggesting further policy adjustments may be needed.
Key Questions Answered
New York Fed President John Williams stated that a further interest rate increase by the US Federal Reserve before the end of the year would be reasonable, though the central bank will first assess incoming economic data before making a final decision.
CME Group’s FedWatch tool showed that the probability of a rate hike rose to 77.5% on Thursday, up significantly from about 53% just a day earlier, as market bets increased following statements from Fed policymakers.
New York Fed chief John Williams stated that the period of explicit forward guidance from the central bank is over, echoing Fed Chair Kevin Warsh's position that the Fed will avoid signaling its intended policy actions at upcoming meetings.
