Federal Reserve's Williams hints at an upcoming rate cut, but not yet ready
Federal Reserve's Williams hinted at a possible rate cut in the coming months, but not at the Fed meeting in two weeks. He believes that the recent slowdown in inflation and cooling labor market are positive signs, but further data is needed to support this. His remarks suggest that the central bank may consider lowering rates in mid-September, provided that there are no major unexpected developments in the economy
On July 17th, according to "Fed Whisperer" Nick Timiraos, Fed's Williams hinted that if recent inflation continues to slow down, there may be reasons to cut interest rates in the coming months, but not at the Fed meeting in two weeks. Williams also mentioned that signs indicate the US labor market conditions are gradually cooling down, and the inflation data of the past three months "brings the Fed closer to the inflation decline trend we expect." These are positive signs. He hopes to see more data to gain further confidence that inflation is steadily moving towards our 2% target. His remarks suggest that the Fed may consider lowering interest rates at the mid-September meeting, provided that there are no major unexpected developments in the economic situation