"I haven't changed my view that another interest rate hike this year is appropriate", he said in an interview with Bloomberg on 13/10. Looking ahead to 2027, Williams stated "there's no reason to believe further action is needed", though he acknowledged that future data could change this outlook.

"We will have to see what happens next year. It's only mid-october now. Many factors influence the economy, which is why we need to continue monitoring the data", he explained.

Last month, the Federal Reserve (Fed) increased its benchmark interest rate by 25 basis points (0,25%) for the first time in over three years. Nearly two weeks later, Williams stated there was no rush to raise interest rates, affirming that the Fed might only need one more action this year.

These statements led investors to anticipate the Fed would maintain current interest rates at its meeting later this month. Several other Fed officials also reiterated their lack of urgency for further tightening after last month's action.

Williams also serves as Vice Chairman of the Federal Open Market Committee (FOMC), the Fed's body responsible for setting benchmark interest rates. His comments thus hold significance, as Fed Chairman Kevin Warsh rarely shares personal views on policy outlook, a departure from his predecessors.

Williams believes inflationary pressures still stem from elevated energy prices due to conflicts in the Middle East. He also noted that technology investments are contributing to rising inflation.

However, Williams predicted in the Bloomberg interview that US inflation would cool, moving closer to the Fed's 2% target. "I still believe inflation will cool next year. The impact of tariffs will be a thing of the past", he stated.

He believes the world's largest economy is not currently overheating. Therefore, he sees "no further inflation shocks beyond what we are currently experiencing".

Ha Thu (according to Reuters, Bloomberg)