New York Fed President Suggests Potential Rate Cuts Amid Cooling Inflation

According to Odaily, New York Federal Reserve President John Williams indicated on Monday that the Federal Reserve might further lower its interest rate targets as inflationary pressures continue to ease. Speaking at a meeting of the Queens Chamber of Commerce in New York, Williams emphasized that monetary policy remains in a restrictive range to support the sustainable return of inflation to the 2% target. Looking ahead, Williams stated, "I expect that over time, it will be appropriate to continue moving towards a more neutral policy setting." He highlighted that the policy path will be data-dependent, reflecting the lessons learned over the past five years about the persistent uncertainty of economic forecasts. However, Williams did not provide specific guidance on the timing of potential rate cuts or whether he anticipates the Federal Reserve will lower its rate targets at this month's Federal Open Market Committee (FOMC) meeting.