Fed president says next move likely to lower rates, but timing uncertain
foxbusiness.comGrant’s Interest Rate Observer founder and editor Jim Grant discusses the financial instability the Federal Reserve is facing on ‘Maria Bartiromo’s Wall Street.’
Federal Reserve Bank of New York President John Williams said Monday that the central bank's next move will likely be to lower interest rates — though he didn't specify a timeline for when that will occur.
«Eventually we'll have rate cuts,» but monetary policy is in a «very good place» for the time being, Williams said in comments before the Milken Institute 2024 Global Conference in Beverly Hills, California.
His comments come after last week's meeting of the Federal Open Market Committee (FOMC), which sets monetary policy. Fed officials maintained the benchmark federal funds rate at a range between 5.25% and 5.5% and signaled it's likely to remain there for some undefined period while they look for additional evidence inflation is falling toward the central bank's 2% target.
Williams, who is a voting member of the FOMC, didn't offer a timeline for reducing interest rates from the highest level in 23 years, given that the Fed's favored metric shows that inflation is running at a 2.7% pace — well above the target rate. When excluding food and energy, underlying core inflation came in even hotter at 2.8%.
FED HOLDS RATES STEADY AS INFLATION CASTS DOUBT ON FUTURE CUTS
Federal Reserve Bank of New York President John Williams said that the central bank's next move will likely be to lower interest rates, though the timing is unclear. (Al Drago/Bloomberg via Getty Images / Getty Images)
He said that he expects that U.S. gross domestic product (GDP) will rise between 2% to 2.5% this year after the economy expanded more rapidly last year.
Williams also said the
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