Wednesday , 6 November 2024
Home Forex Fed’s Williams Signals More Rate Cuts Ahead After September Reduction
Forex

Fed’s Williams Signals More Rate Cuts Ahead After September Reduction

Federal Reserve Bank of New York President John Williams suggested that further rate cuts will be appropriate over time, aligning with Chair Jerome Powell’s outlook for gradual reductions.

Full Story on PiQ Suite

Williams told the FT:

“I personally expect that it will be appropriate again to bring interest rates down over time,”

“Right now, I think monetary policy is well positioned for the outlook, and if you look at the SEP [Summary of Economic Predictions] projections that capture the totality of the views, it’s a very good base case with an economy that’s continuing to grow and inflation coming back to 2 per cent.”

After September’s larger-than-usual half-point rate cut, the Fed appears set to follow a more measured approach in the coming months as economic data continues to support growth and inflation moderation.

The latest payrolls report strengthened expectations of a quarter-point rate cut in the near term, with traders pricing in a high probability for November.

Williams’ comments highlight how the Fed is walking a fine line—supporting the economy while making sure it doesn’t cut rates too quickly and spark inflation again.

This article was written by Ryan Paisey at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Nevada exit poll highlights Trump’s big improvement among hispanic voters

Preliminary results of Nevada exit poll:&]:mt-2 list-disc space-y-2 pl-8" depth="0">Trump wins 52%...

UK government confirms spread of bird flu in commercial poultry

Passing on this info from Reuters ICYMI. UK government said on Tuesday...

Dollar rejoices as Trump looks to pass North Carolina test

North Carolina is the first swing state to be called (by Decision...

China state banks seen selling USD/CNY – intervention to slow yuan drop

Major Chinese state banks selling USD/CNY trying to contain the yuan losses.Good...