New rate hike signal from the Fed: Williams drew attention to inflation pressure

New York Fed President John Williams signaled that further interest rate hikes remain possible, citing persistent inflation despite the strength of the U.S. economy. With the December policy meeting approaching, both 25- and 50-basis-point increases are reportedly on the table, though the timing remains uncertain. Williams' comments keep the door open to additional tightening even as the Fed weighs how aggressively to respond to sticky price pressures. Investors will watch incoming inflation and labor data, along with Fed communications ahead of the December meeting, for clues on the size and pace of any move.