New York Fed President John William said, that the December interest rate projection “still seems a very reasonable view of what we’ll need to do this year in order to get supply and demand in balance and bring inflation down.” Median projection was a peak rate of 5.1% by the end of this year.
He added that further increase of 24bps “seems like the right size”. But the pace would remain dependent on incoming data. “We still have our work cut out for us.”
“The Fed will watch the data to determine the path of rate rises,” Williams added. “Maybe services prices stay elevated, and if that happens we’ll need higher rates.”