Federal Reserve Williams said that the cooling of the labor market and the mitigation of the risk of inflation provided the basis for the Fed's decision to cut interest rates last week. Williams first publicly commented on last week's decision to cut interest rates. He said he is increasingly convinced that price increases will continue to slow down. Reserve Bank Williams said that inflation “stays temporarily” above the Federal Reserve's target, but he believes that as the impact of tariffs is absorbed by the broader economic system next year, inflation may continue to decline. At the same time, he said that although the employment situation has not deteriorated dramatically, it is gradually cooling down, as reflected in official data and consumer and business surveys. Williams said that taken together, these changes in pressure on the Fed's two major economic goals supported last week's decision to cut interest rates.

Federal Reserve Williams said that the cooling of the labor market and the mitigation of the risk of inflation provided the basis for the Fed's decision to cut interest rates last week. Williams first publicly commented on last week's decision to cut interest rates. He said he is increasingly convinced that price increases will continue to slow down. Reserve Bank Williams said that inflation “stays temporarily” above the Federal Reserve's target, but he believes that as the impact of tariffs is absorbed by the broader economic system next year, inflation may continue to decline. At the same time, he said that although the employment situation has not deteriorated dramatically, it is gradually cooling down, as reflected in official data and consumer and business surveys. Williams said that taken together, these changes in pressure on the Fed's two major economic goals supported last week's decision to cut interest rates.