Fed's Williams Sees Room for a Near-Term Rate Cut

Watch Fed's Williams Sees Room for a Near-Term Rate Cut - Bloomberg on Dailymotion

Transcript

00:00Monetary policy is very focused on balancing the downside risk to our maximum employment goal

00:05and the upside risk to price stability.

00:08My assessment is the downside risks to employment have increased as the labor market has cooled,

00:13while the upside risks to inflation have lessened somewhat.

00:17Underlying inflation continues to trend downward,

00:19absent any evidence of second-round effects emanating from tariffs.

00:23For these reasons, I fully support the FOMC's decisions to reduce the target range for the federal funds rate

00:28by 25 basis points at each of its past two meetings.

00:33Looking ahead, it's imperative to restore inflation to our 2% longer-run goal on a sustained basis.

00:39It's equally important to do so without creating undue risks to our maximum employment goal.

00:45I view monetary policy as being modestly restrictive, although somewhat less so than before our recent actions.

00:52Therefore, I still see room for a further adjustment in the near term

00:56to the target range for the federal funds rate to move the stance of policy closer to the range of neutral,

01:02thereby maintaining the balance between the achievement of our two goals.

01:06My policy views, of course, will, as always, be based on the evolution of the totality of the data,

01:12the economic outlook, and the balance of risk to the achievement of our maximum employment and price stability goals.

01:18I will see you in the near future of the data.

01:19I will see you in the near future.

01:20I will see you in the near future.

01:21I will see you in the near future.

01:22I will see you in the near future.

01:23I will see you in the near future.

01:24I will see you in the near future.

01:25I will see you in the near future.

01:26I will see you in the near future.

01:27I will see you in the near future.

01:28I will see you in the near future.

01:29I will see you in the near future.

01:30I will see you in the near future.

01:31I will see you in the near future.

01:32I will see you in the near future.

01:33I will see you in the near future.

01:34I will see you in the near future.

01:35I will see you in the near future.

01:36I will see you in the near future.