- Labour market is now in balance, not providing upward pressure on inflation
- Wants to see inflation coming down to 2% and staying around that level amid solid labour market
- Don't see any signs of a recession in the data
- It is pretty clear that monetary policy is restrictive today
- That is why it is "very appropriate" to cut rates in the past two meetings
- We're well positioned for risks of inflation being higher than we expect for next year
- Expects it to be appropriate to cut rates further to more normal or neutral levels over time
- Full transcript
There's nothing new in the comments here from Williams. As things stand, Fed funds futures are showing a ~53% probability of a rate cut next month. The upcoming non-farm payrolls report on 6 December is going to be crucial in finalising any biases here as policymakers are not offering all too much to work with for now.
