Chicago

Williams Signals No Rush on Rates as Goolsbee Warns Against Fed Overreach

Federal Reserve Bank of New York President John Williams said the central bank could still raise interest rates once more before year-end, but stressed that policymakers are not in a hurry and want more data before deciding. He projected inflation may finish the year around 3.5% before gradually returning to the Fed’s 2% target by 2028, underscoring a slower disinflation path than markets would prefer. Chicago Fed President Austan Goolsbee separately cautioned against over-tightening, warning that policymakers should avoid “playing with fire” as the economy remains sensitive to higher borrowing costs.