New York Fed President Williams said the policy rate will eventually need to rise to around 4.5%. He simply said the pace of the rally and peak in this tightening cycle would depend on economic conditions ahead.
“The timing and how much we need to raise rates will depend on the data,” he said at an event hosted by the State University of New York at Buffalo on Wednesday. to return to,” he said.
According to the U.S. employment report released on the same day, the number of nonfarm payrolls increased by 263,000 from the previous month. The unemployment rate fell to 3.5%, the lowest level in nearly 50 years. Markets expect the US Federal Open Market Committee (FOMC) to raise interest rates by 0.75 percentage points at its next meeting in November. If the rate increases by the same range, the target range of the Federal Funds (FF) rate will be 3.75% to 4%.
U.S. Employment Increases by 263,000, Unemployment Falls Unexpectedly; Pressure Continues on Fed (3)
Williams said he was aware of the global impact of the Fed’s tightening and was in contact with central banks in other countries and regions facing high inflation like the United States. He added that the focus of the U.S. authorities is on the domestic goal of restoring price stability.
“All of us are making our own efforts to make decisions that will bring the economy back into balance,” he said.
Original title:Fed’s Williams Sees Rates Heading to Around 4.5% to Cool Prices(excerpt)