Fed Officials Signal Ongoing Inflation Battle as Williams Rules Out 2027 Rate Hike

Federal Reserve officials indicated that the fight against inflation remains active, though New York Fed President John Williams sees no rationale for interest rate hikes in 2027. While Williams suggested one more increase could be appropriate in 2026 as inflation nears the 2% target, Boston Fed President Susan Collins and Richmond Fed President Tom Barkin struck hawkish tones, citing fuel and AI investment pressures. Markets responded to the remarks with declining Treasury yields, as the 10-year yield fell to 5.217% and the 30-year yield slipped to 5.561%.