Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com -- Federal Reserve Bank of New York President John Williams indicated his support for additional interest rate cuts in 2025, citing concerns about potential further cooling in the labor market.
"My own view is that yes, we would have lower rates this year, but we’ll have to see exactly what that means," Williams said in an interview published by the New York Times on Thursday.
Williams emphasized the need to balance inflation control with labor market stability. He noted that while allowing inflation to exceed the Fed’s 2% target would harm the economy and the central bank’s credibility, policymakers must also work to minimize risks of a sharper labor market slowdown.
"The risk that inflation got well above 2% and we didn’t bring it back down would be very damaging to the economy and to our credibility. But we need to do it in a way that does our best to minimize the risk of the labor market cooling more sharply," Williams told the newspaper.
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