TechFlow News, according to Jinshi, Federal Reserve's Williams stated that the Fed is now in a favorable position to achieve a soft landing for the U.S. economy. He also suggested supporting a slower pace of rate cuts following the 50-basis-point reduction in September. Williams said the "very good" employment report confirmed that the U.S. economy remains strong and healthy. The decision to cut rates by 50 basis points was "the right call in September, and it remains the right call today."
When asked about the magnitude of future rate cuts, Williams noted that the latest dot plot indicates two more 25-basis-point reductions at each of the remaining meetings this year, calling it a "very good base case." These decisions will depend on data rather than following a "preset path," and the 50-basis-point cut in September is not a "template for future actions." Williams also mentioned the need to remain vigilant against shocks arising from regions such as the Middle East.
