New York Federal Reserve President John Williams on Friday pushed back on surging market expectations of interest rate cuts, saying the central bank is still focused on whether it has monetary policy on the right path to continue bringing inflation back to its 2% target.
“We aren’t really talking about rate cuts right now,” Williams said in an interview with CNBC. When it comes to the question of lowering rates, he said it’s “just premature to be even thinking about that” at this point.
Williams was the first Fed official to weigh in following the central bank’s decision on Wednesday to hold its benchmark overnight interest rate unchanged in the 5.25%-5.50% range. Fed policymakers also penciled in 75 basis points of rate cuts in their forecasts for next year.
“We aren’t really talking about rate cuts right now,” New York Fed President John Williams said in an interview with CNBC. REUTERS
That pivot helped spark a sharp rally in stock and bond markets.
Fed Chair Jerome Powell said at his press conference following the end of the two-day policy meeting that the central bank would raise rates again if it deemed such a move necessary. Williams cautioned that a move higher in interest rates still can’t be ruled out. » …
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