PiCK

Williams, Fed official "Still room to cut rates"

Uk Jin

Summary

Williams, a Fed official, said there is room for a policy rate cut.
He said the Fed would maintain a balance between price stability and maximum employment goals.
He also indicated the possibility of a short-term rate cut along with labor market easing.

John Williams, president of the Federal Reserve Bank of New York, said there is room for a short-term cut in the policy rate.

According to Investing.com on the 21st (Korea time), Williams said at a Central Bank of Chile event, "Current monetary policy is somewhat restrictive, but the Fed still has room to implement a short-term rate cut," adding, "We will maintain a balance between the Fed's goals of price stability and maximum employment."

He went on to explain, "Even if the impact of tariffs is reflected in the economy, it will not lead to sustained inflationary pressure." Williams also said, "The labor market is easing, with the September unemployment rate rising to 4.4%, similar to pre-pandemic levels."