Fed's Williams: Slowing job growth and easing inflation risks support Fed rate cuts

Federal Reserve Bank of New York's John Williams stated that a cooling labor market and easing inflation risks justified the Fed's decision to cut interest rates last week. This was Williams' first public comment on last week's rate cut. He said he is increasingly convinced that price increases will continue to slow. Williams stated that inflation is "temporarily hovering" above the Fed's target, but he believes it is likely to continue declining as the effects of tariffs are absorbed by the broader economy next year. Meanwhile, he noted that while the employment situation has not deteriorated sharply, it is gradually cooling, as reflected in official data and consumer and business surveys. Williams stated that, taken together, these changes in pressure on the Fed's two main economic goals supported last week's rate cut decision. (Jinshi)