New York Fed President Williams Signals Possible Near-Term Rate Cuts Despite Stalled Inflation Progress

Williams acknowledged that the current monetary stance remains “slightly restrictive,” suggesting that policy easing is still on the table if economic conditions justify it.Despite the slowdown in inflation improvement, Williams reaffirmed the Fed’s confidence that price growth will return to the 2% target by 2027, aligning with the central bank’s longer-term projections.His comments come as markets continue to reassess expectations for December and early-2026 rate decisions, amid weaker data visibility following the U.S. government shutdown and renewed uncertainty over labor-market strength.