On December 16, Federal Reserve official 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 decision.
He stated that he is increasingly convinced that price increases will continue to slow. Williams said inflation is "temporarily" above the Fed's target, but he believes it may continue to decline as the effects of tariffs are absorbed by the broader economy next year.
At the same time, he stated that while the employment situation has not deteriorated sharply, it is gradually cooling, as reflected in official data and consumer and business surveys. Williams indicated that, taken together, these changing pressures on the Fed's two main economic goals supported last week's rate cut decision. (Jinshi)
