What did John Williams say about interest rates?

John Williams stated he sees room to lower interest rates again in the near term due to a softening labor market.

How will the softening labor market affect Fed interest rates?

A softening labor market with increased downside risks to employment increases the likelihood of the Federal Reserve cutting interest rates.

Will the Federal Reserve cut interest rates in December?

Investor expectations for a December rate cut have significantly increased, reaching around 70% after John Williams' recent comments.

Home / Business and Economy / Fed's Williams Hints at More Rate Cuts Soon

Fed's Williams Hints at More Rate Cuts Soon

22 Nov

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Summary

Federal Reserve President John Williams sees room for near-term rate cuts.
He noted increased downside risks to employment and eased inflation risks.
Investor expectations for a December rate cut significantly rose post-speech.

Fed's Williams Hints at More Rate Cuts Soon

Federal Reserve Bank of New York President John Williams has signaled a potential for further interest rate reductions in the immediate future. His comments suggest an evolving economic landscape where employment faces growing downside risks and inflation pressures are easing.

These remarks, delivered in Santiago, Chile, have directly influenced market sentiment. Investors have substantially boosted the probability of a rate cut occurring at the upcoming Federal Open Market Committee meeting in December.

The increased anticipation for a rate cut, now estimated at around 70%, reflects a shift in market expectations following Williams' speech, up from previous estimates.