New York Fed President John Williams shared optimistic views on the US economy in an interview with FOX Business today. Williams highlighted encouraging signs that supply and demand are rebalancing, contributing to a “disinflationary process continuing.” He anticipates that inflation will keep decreasing throughout the second half of this year and into the next.
Williams expects interest rates to “come down gradually over the next couple of years” as inflation moves back towards the Fed’s 2% target and the economy follows a strong, sustainable path.
However, he refrained from specifying the timing of the first rate cut, stating, “I’m not going to make a prediction” about the exact path of policy.
Williams emphasized that future decisions will be data-dependent, noting, “I think that things are moving in the right direction” for eventual policy easing.
