New York Fed President John Williams said in a CNBC interview that interest rates are likely to move lower over time, though he offered no timetable for when easing might begin. He described the U.S. economy as generally strong, albeit slowing modestly, and characterized the labor market as “solid,” echoing language used by other Fed officials.
Williams emphasized that any decision will remain data-driven. “If things move in the way that I hope they do in terms of our maximum employment and price stability goals, then I do think it will be appropriate to move interest rates down over time,” he said. Markets continue to expect the next cut to come at the September meeting.
While avoiding direct comment on US President Donald Trump’s attempt to dismiss Fed Governor Lisa Cook, Williams noted her integrity and commitment to the central bank’s mission. He stressed that the Fed’s independence is vital for ensuring long-term economic and financial stability.
He used the moment to reaffirm the principle of central bank independence. “Independent central banks can deliver low inflation, economic and financial stability,” Williams said.
