On September 30, Fed's Williams stated on Monday that initial signs of weakness in the labor market prompted him to support a rate cut at the recent Fed meeting. Williams said, "It makes sense to slightly lower the interest rate," and that "moderately easing some tightening measures" would help boost the job market and apply some downward pressure on still elevated inflation levels. In addition, he stated that his model estimates the actual neutral interest rate at 0.75%, but he added that while the neutral rate is important, policy is data-driven. ( Jin10 )
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Williams: Supports interest rate cuts, the estimate for the real neutral Intrerest Rate is 0.75%.
On September 30, Fed's Williams stated on Monday that initial signs of weakness in the labor market prompted him to support a rate cut at the recent Fed meeting. Williams said, "It makes sense to slightly lower the interest rate," and that "moderately easing some tightening measures" would help boost the job market and apply some downward pressure on still elevated inflation levels. In addition, he stated that his model estimates the actual neutral interest rate at 0.75%, but he added that while the neutral rate is important, policy is data-driven. ( Jin10 )