New York Federal Reserve Bank President Williams stated there is currently no urgency for further interest rate adjustments, as recent employment and inflation data have done little to alter his outlook.
"I personally don’t feel an urgent need to take additional monetary policy actions at this time, as I believe the rate cuts we’ve already implemented have positioned policy in a very good place," Williams said in an interview on Friday. "I want to see inflation return to 2% without causing unnecessary harm to the labor market. It’s about achieving a balance."
His remarks highlight the uncertainty surrounding further rate cuts after the Fed’s third consecutive meeting with a rate reduction. Policymakers remain divided over inflation and employment prospects. The latest projections released after last week’s meeting showed officials anticipate only one rate cut in 2026.
Williams noted that this week’s employment and inflation reports reflected data distortions caused by the recent government shutdown. However, he pointed out that the data suggests underlying inflation continues to progress toward the Fed’s 2% target, while the labor market is gradually cooling.
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