New York Federal Reserve President John Williams reiterated that one additional interest-rate increase in 2026 may be appropriate, while saying he currently sees no reason to anticipate further tightening in 2027. In comments to Bloomberg on Tuesday, he said the longer-term outlook would depend on how economic conditions evolve. The Federal Reserve raised its policy rate by 25 basis points last month to a 3.75%-4.00% range. Williams expects inflation to ease substantially next year toward the Fed's 2% target as tariff effects recede and energy prices stop adding to price pressures, although high energy costs tied to the Middle East war and technology-sector investment are lifting inflation in the near term. His stance reinforced expectations that policymakers are in no rush to raise rates again at their Oct. 27-28 meeting, even as markets had priced further tightening beyond this year.