Federal Reserve member Williams: We expect the economy to allow for further interest rate cuts.

During his speech at Binghamton University on Thursday, the Vice President of the Federal Reserve Bank of New York and voting member of the Federal Open Market Committee, John Williams, commented on the inflation data released today. His key statements were as follows:

• I expect that economic data will allow the Federal Reserve to lower interest rates further.
• Inflation in the United States is expected to decline to 2.25% this year, and approach 2% next year.
• U.S. GDP is expected to range between 2.25% and 2.50% this year.
• I expect the unemployment rate to reach 4.25% and remain close to that in 2025.
• The recent interest rate cuts by the Federal Reserve are expected to put the economy in a strong position.
• Economic data will determine the pace and magnitude of future cuts.
• It is unlikely that the labor market will be a driver of inflation in the future.