Federal Reserve's Williams: It is appropriate to cut interest rates at the right time

Jinse Finance reported that New York Federal Reserve President Williams stated that he expects "over time" that rate cuts will "become appropriate," but did not specify the timing or pace of such actions. In a speech prepared for a New York Economic Club event on Thursday, Williams said, "Looking ahead, if our dual mandate objectives continue to make progress in line with my baseline forecast, I expect that over time, shifting interest rates toward a more neutral stance will be appropriate." Williams noted that the Federal Reserve is facing a "delicate balance" between employment and inflation risks. He said, "On one hand, we need to keep the labor market balanced to ensure that the impact of tariffs does not spill over into a more persistent and broad-based rise in inflation. On the other hand, maintaining a stance of 'overly tight policy for too long' could pose risks to our maximum employment mandate." He also stated that so far, the impact of tariffs on inflation has not been as severe as initially feared, though he added, "It is still too early to tell, and the effects of tariffs will take time to fully materialize."