The Globe and Mail reports in its Friday edition that Federal Reserve Bank of New York president John Williams said on Thursday that the U.S. central bank is likely done with interest rate hikes, but he added that rates could rise again if inflation pressures do not continue to moderate. A Reuters dispatch to The Globe reports that Mr. Williams said, "The future remains highly uncertain, and our decisions will continue to be data-dependent." He said the risks for the economy are currently two-sided between too high inflation and a weaker economy, and "in balancing these risks, and based on what I know now, my assessment is that we are at, or near, the peak level of the target range of the federal funds rate." Mr. Williams said he would continue to watch incoming data, but noted that "if price pressures and imbalances persist more than I expect, additional policy firming may be needed." He also noted monetary policy would need to stay restrictive for some time. Reuters notes that Fed officials are entering their customary blackout period where they refrain from public comment on monetary-policy issues ahead of a rate-setting meeting. The Federal Open Market Committee meeting is scheduled for Dec. 12 and Dec. 13.
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