Federal Reserve's Williams suggests no reason for rate cuts in the short term

PANews, January 13 – According to Jinse Finance, New York Federal Reserve President Williams said on Monday that he expects the U.S. economy to remain healthy in 2026 and indicated there is no reason for a rate cut in the short term. Williams stated that the FOMC has moved monetary policy from a moderately restrictive stance closer to neutral, saying, "The current monetary policy is well positioned to help support labor market stability and drive inflation back to the 2% target." Williams emphasized that it is crucial for the Federal Reserve to "avoid unnecessary risks to the job market" while bringing inflation back to the 2% target. He added, "In recent months, as the labor market has cooled, downside risks to employment have increased, while upside risks to inflation have diminished." Williams expects GDP growth this year to be between 2.5% and 2.75%, with the unemployment rate stabilizing this year and declining in the following years. Regarding inflation, he expects price pressures to peak between 2.75% and 3% in the first half of this year, average 2.5% for the full year, and return to 2% in 2027.