New York Fed President John Williams said there is no immediate need to raise or cut rates, highlighting upside inflation risks from tariffs while projecting U.S. growth in 2026 at 2%–2.25% and contrasting with Dallas Fed's view on potential rate hikes.
New York Fed President John Williams stated on June 3 that monetary policy is currently "in the right place," signaling no immediate need for rate adjustments. He noted that tariff developments are increasing upside inflation risks, while projecting U.S. growth in 2026 at 2%–2.25%. Williams's comments, made to Yahoo Finance, contrast with Dallas Fed President Lorie Logan, who suggested rates may need to rise later this year if inflation remains above the Fed's 2% target. Market data from CME FedWatch showed a 40.9% chance that rates stay unchanged through end-2026, a 41.6% chance of cumulative 25 basis-point hikes, and a 1.7% chance of a 25 basis-point cut at the June meeting.