New York Federal Reserve President John Williams on CNBC’s “Squawk Box,” rate cuts are not currently being discussed by the central bank. Williams emphasized that the focus at the moment is on evaluating whether the monetary policy is adequately restrictive to ensure inflation returns to the desired level of 2%. This statement from Williams comes as the Dow Jones Industrial Average reached a record high, and the 10-year Treasury yield dropped below 4.3% this week. Traders interpreted the Fed’s forecast of three rate cuts next year as a signal of a change in the central bank’s stance, expecting rate cuts to be implemented earlier than initially anticipated in 2020. However, Williams seems to be tempering some of this enthusiasm.
Source (CNBC)
