Fed's Williams and Collins say one more rate rise may be needed this year
Fed official Williams said one more interest-rate rise this year is appropriate (Bloomberg, FinancialJuice), calling AI the inflation driver he watches most closely and saying he does not see broad price pressure outside AI and energy (FinancialJuice). Fed official Collins said another rise is on the table before the end of 2026 (Reuters, Bloomberg) and that she supported September's rise (FinancialJuice). Barkin said acting on inflation makes sense (FinancialJuice). Bloomberg's gold and Asia-stocks wraps read the remarks as tempering rate-hike bets, and Reuters said the dollar languished ahead of US consumer-price data.
US rates set the price of dollars worldwide, and officials are saying the tightening cycle is not over.
Higher US rates and a firm dollar can make dollar debt costlier for governments and companies, Kenyan ones included, and can weigh on the shilling. Nothing here has changed Central Bank of Kenya policy.
Today's US consumer prices will decide whether 'one more' becomes 'two'.
DailyDrop Kenya edition No. 10 · Morning · WED., OCT. 14, 2026