{"id":438748,"date":"2026-09-24T16:40:17","date_gmt":"2026-09-24T09:40:17","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/fed-policymaker-williams-says-another-rate-hike-this-year-is-reasonable-as-inflation-is-the-main-obstacle-438748\/"},"modified":"2026-09-24T16:40:17","modified_gmt":"2026-09-24T09:40:17","slug":"fed-policymaker-williams-says-another-rate-hike-this-year-is-reasonable-as-inflation-is-the-main-obstacle","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/fed-policymaker-williams-says-another-rate-hike-this-year-is-reasonable-as-inflation-is-the-main-obstacle-438748\/","title":{"rendered":"Fed policymaker Williams says another rate hike this year is &#8220;reasonable&#8221; as inflation is the main obstacle"},"content":{"rendered":"<div>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Williams is offering up a fairly straightforward assessment of the US economy and the policy outlook today. His key comments:<\/p>\n<ul>\n<li>The US economy has shown remarkable resilience<\/li>\n<li>The downside risks to achieve maximum employment have diminished<\/li>\n<li>The biggest obstacle now is inflation<\/li>\n<li>The Fed&#8217;s aim is to return inflation to target promptly<\/li>\n<li>It seems &#8220;reasonable&#8221; to implement another rate hike by the end of the year<\/li>\n<li>The era of explicit and direct forward guidance  is over<\/li>\n<li>We do not know if higher yields will continue to persist<\/li>\n<\/ul>\n<p style=\"text-align: justify\" class=\"text-align-justify\">The key takeaway for me\u00a0is how Williams is framing the balance of risks. The Fed had already raised interest rates by 25 bps last week to 3.75% to 4.00%, reinforcing a &#8220;timelier&#8221; return towards returning inflation to the 2% target in its statement. And\u00a0Williams&#8217; remarks mainly reinforce that sentiment.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">The signal here is that if\u00a0policymakers are less worried about employment deteriorating, there is simply more room to keep leaning against inflation.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">That said, he&#8217;s still not explicitly framing this as a promise of another rate hike.\u00a0His point that the era of explicit forward guidance is over reinforces the notion that the Fed wants to be able to retain flexibility and optionality.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Higher Treasury yields can do some of the work for the Fed in terms of tightening financial conditions. But at some point, policymakers still have to act themselves &#8211; as we saw with last week&#8217;s decision.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">For now, his comments do fit somewhat with\u00a0how markets are repricing the Fed outlook. The odds of another 25 bps rate hike in October have climbed to around 77%, while December pricing is starting to entertain something more aggressive still.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">\n<p>                            This article was written by Justin Low at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Williams is offering up a fairly straightforward assessment of the US economy and the policy outlook today. His key comments: The US economy has shown remarkable resilience The downside risks to achieve&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-438748","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/438748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=438748"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/438748\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=438748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=438748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=438748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}