In an interview with Fox Business, New York Federal Reserve President John Williams noted that recent inflation data have been encouraging and added that he expects inflation to continue to come down, per Reuters.
Fed officials in no rush to cut rates, looking for further progress in inflation.
Key takeaways
"Rate cut path depends on data."
"The US economy is doing well, it's in better balance."
"Fed decisions will depend on the economy."
"Things are moving in the right direction for monetary policy."
"Expecting interest rates to come down gradually as inflation eases."
"Politics will not influence Fed rate decisions."
"We have a very strong economy and incomes are growing."
"Interest rates will come down over next few years."
"3% inflation is not the new norm, Fed will get inflation to 2%."
"We still have a very strong labor market with some hiring slowing."
Market reaction
The US Dollar struggles to gather strength following these comments. At the time of press, the US Dollar Index was unchanged on the day at 105.35.
