New York Federal Reserve President John Williams stated that rate cuts are currently not being discussed by the central bank. In an interview on “Squawk Box,” Williams emphasized their primary focus is on determining whether the current monetary policy is appropriately restrictive to bring inflation back down to the target rate of 2%.
While market reactions led to record highs in the Dow Jones Industrial average and a dip in the 10-year Treasury yield below 4.3% after the Fed’s forecast of three rate cuts for next year, Williams downplayed the notion of an imminent rate cut. Despite trader speculation that the central bank may cut rates more than three times, fed funds futures do indicate a possibility of rate cuts beginning as early as March.
Source (CNBC)
