NY Fed President Indicates Potential for Further Rate Cuts

New York Federal Reserve President John Williams suggested on Friday that additional interest-rate reductions may be warranted in the near future, highlighting the potential for further easing by the U.S. central bank as it aims to achieve a policy stance neither stimulating nor restricting economic activity. Speaking at a conference, Williams indicated his support for the two recent rate cuts and believes the current level of interest rates is still slightly tighter than necessary. “I still see room for a further adjustment in the near term to move the federal-funds rate target range closer to neutral,” he stated in prepared remarks.