Federal Reserve's Williams Suggests Rate Cuts Amid Economic Progress

According to Odaily, Federal Reserve official Williams has indicated that it is now appropriate for the Federal Reserve to consider rate cuts, given the progress made in reducing inflation and cooling the job market. The Federal Reserve has made 'significant progress' in achieving its dual mandate of maintaining price stability and full employment, with the risks to achieving these goals now in a 'balanced' state. Williams expressed increased confidence that inflation is steadily moving towards the central bank's 2% target, adding that the labor market is unlikely to be a future source of price pressure. Although Williams did not specify the extent of the initial rate cut, he mentioned that officials could shift policy to a neutral stance. Over time, this will depend on the evolution of data, the outlook, and the risks to achieving their goals.