In an interview with BloombergTV. New York Fed President John Williams suggested that Fed is still on track to start cutting interest rates within the year.
“We will need to start a process at some point to bring interest rates back to more normal levels, and my own view is that process will likely start this year,” Williams stated.
Regarding the recent inflation data, Williams did not regard it as a decisive shift in economic trends but acknowledged its impact on his assessments and future forecasts.
Williams also touched on the topic of the Federal Reserve’s balance sheet management, specifically the ongoing quantitative tightening process. He advocated for a more measured pace in reducing the Fed’s balance sheet, a strategy aimed at allowing more room for evaluation and adjustment.
