[Federal Reserve's Williams: One More Rate Hike Possible This Year, No Further Hikes Needed Next Year] BlockBeats News, October 14 — New York Fed President Williams stated that one more rate hike this year would be appropriate, but if the economic outlook aligns with expectations, no further rate hikes may be necessary in 2027. He expressed support for the September rate hike decision, citing factors such as rising energy prices and increased investment in AI infrastructure. Williams noted that the Middle East conflict has driven up energy prices, which are being transmitted to core inflation through sectors like transportation and food. Meanwhile, the demand for data centers and chips driven by AI development is increasing the cost of certain goods and impacting labor costs in the construction industry. He stated that although tariffs, energy prices, and AI-related demand have caused inflation to exceed expectations this year, inflation expectations remain stable, core inflation indicators continue to decline, and inflation is expected to significantly decrease next year, approaching the 2% target. Williams remarked that the growth in AI demand is substantial, with short-term demand outpacing supply. However, as chip production capacity increases and productivity improves, the supply side may improve in the future, potentially exerting downward pressure on inflation. Regarding the rise in U.S. Treasury yields, Williams explained that long-term yields are influenced by multiple factors, including bond supply and demand, AI investment, fiscal policy, and energy prices, rather than solely by monetary policy. [Original Link]