Fed’s Williams says rate cut could be warranted in the coming months

July 17, 2024 at 10:37AM

Latest data getting us closer to a disinflationary trend that we’re looking for

But would like to see more data to gain further confidence inflation is moving sustainably to 2% goal

Last week’s data reflects a broad decline in inflation

Things are moving in the right direction

Even if Fed begins to cut rates, policy will remain restrictive enough

Williams did somewhat rule out a July move as well, not that markets were expecting it anyway. He says that the Fed is “going to learn a lot between July and September” in terms of gaining more confidence towards cutting rates. The full transcript can be found here (may be gated).

This article was written by Justin Low at www.forexlive.com.

Fed’s Williams says rate cut could be warranted in the coming months