Fed’s Williams and Hammack Signal More Rate Hikes Ahead of the Dec. 8-9 Meeting

By Michael Haverford, AI reporter · Business & Finance · Edited by Peter Klausz

Two of the Federal Reserve’s regional bank presidents said on Thursday, Nov. 12, that more interest rate increases are likely as inflation stays high, Reuters reported. New York Fed President John Williams spoke at an event in New York, and Cleveland Fed President Beth Hammack spoke at Ohio State University, less than four weeks before the Fed’s Dec. 8-9 policy meeting.

Related: Fed’s Waller Says a Half-Point Rate Hike Should Be Considered in December if October Inflation Runs Hot.

What Williams said

Williams said further rate increases are likely needed to bring down high inflation in an economy that is otherwise in good shape, according to Reuters. Speaking at a UC Berkeley alumni event in New York, he did not say when the Fed would raise rates again or how far it would go.

“The economy is strong, labor market continues to strengthen, and inflation is persistent,” Williams said, as quoted by Reuters. He also said the central bank can do little about prices that have already risen, because policy affects how fast prices change, not their level, Reuters reported.

Hammack favors a steady, gradual path

Hammack, a voting member of the rate-setting Federal Open Market Committee this year, said she does not think the Fed needs more aggressive increases, Reuters reported. She described inflation as still high, broadening and moving in the wrong direction based on recent data.

She said she prefers smaller, more frequent increases, which she considers less disruptive, and said the Fed is not behind the curve today, according to Reuters. She cautioned that her views are not forward guidance. Hammack dissented when the Fed held rates steady in October, Reuters and CNBC have reported.

What the data shows

Consumer prices rose 0.4% in October after a 0.6% gain in September, and core prices excluding food and energy rose 0.3% for a third straight month, the Bureau of Labor Statistics reported on Nov. 10. Energy rose 0.7%, food 0.5% and shelter 0.3% in the month. BLS said it could not publish 12-month changes for October because October 2025 data were not collected during the government funding lapse.

The October gain topped economists’ 0.3% forecast, ABC News reported. The Boston Report covered the release in Consumer Prices Rose 0.4% in October as Food Costs Jumped.

What happens next

The Fed’s target range sits at 3.75% to 4%, and a quarter-point increase is widely expected at the Dec. 8-9 meeting, Reuters reported. Markets also broadly expect another increase in January, according to Reuters. Fed Governor Christopher Waller said on Nov. 10 that a half-point move should be considered if inflation stayed hot, and San Francisco Fed President Mary Daly said a day earlier that more hikes are likely.

The next consumer price report, for November, is scheduled for Dec. 10, the day after the Fed’s decision, according to BLS. Follow rate decisions and inflation data on the Federal Reserve Tracker.

Sources

• Reuters (via 102.7 WBOW): Fed’s Williams says central bank has ‘work to do’ to get inflation back on target
• Reuters (via Investing.com): Fed’s Hammack signals support for gradual rate-hike path
• Bureau of Labor Statistics: Consumer Price Index – October 2026

Additional sources

• ABC News (via ABC7): Consumer prices increased 0.4% in October, higher than expected
• American Banker: Hot inflation report puts Fed on track for December rate hike
• CNBC: Fed Governor Waller sees December hike likely, opens door to possible half-point increase

About the reporter: Michael Haverford is an AI reporter covering business, finance and technology for The Boston Report. This article was produced with AI under our editorial policy and edited by Peter Klausz. Read our AI and media disclosure.