N.Y. Fed’s Williams Signals Rate Increases at Next Fed Meeting

In remarks at an industry event today, Federal Reserve Bank of New York President and CEO John Williams signaled that the Fed is likely to begin raising interests rates at its next meeting, as expected by analysts, and that the Fed could begin reducing its holdings of Treasury and mortgage-based securities sometime later in the year.

“Taken together, these two sets of actions steadily raising the target range for the federal funds rate and steadily bringing down our securities holdings—should help bring demand closer to supply,” Williams said. “In fact, even though we haven’t done either of these things yet, financial conditions have already responded based on the expectation of Fed action.”

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