Fed’s Williams: Eventual rate cuts aimed at keeping policy from being too restrictive
John Williams, President of the Federal Reserve (Fed) Bank of New York, said on Tuesday that the Fed's rate-policy stance is well-positioned, and that any eventual rate cut would be aimed at keeping policy from being too restrictive.
In his remarks at America's Credit Unions Governmental Affairs Conference in Washington DC, Williams did not address the economic impact of the Iran war.
Key takeaways:
If inflation ebbs, 'further reductions' in policy rate target 'eventually' warranted.
Central bank's rate policy stance currently 'well positioned'.
Eventual rate cuts aimed at keeping policy from being too restrictive.
Expects the unemployment rate to edge down this year and next.
Sees 2.5% GDP growth in 2026 on array of supporting factors.
Expects inflation to wane to 2.5% this year, 2% in 2027.
Last year's rate cuts better balanced policy against dual mandates.
So far no major second round impact from tariffs.
Tariffs key driver of inflation, but that pressure should wane this year.
Tariff impact mostly felt domestically.
Economy on solid footing, job market stabilizing.
Recent data on inflation has been reassuring.”
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 1.02% | 0.76% | 0.36% | 0.22% | 1.33% | 1.36% | 0.65% | |
| EUR | -1.02% | -0.26% | -0.68% | -0.80% | 0.32% | 0.34% | -0.37% | |
| GBP | -0.76% | 0.26% | -0.42% | -0.53% | 0.57% | 0.60% | -0.11% | |
| JPY | -0.36% | 0.68% | 0.42% | -0.13% | 0.98% | 0.99% | 0.30% | |
| CAD | -0.22% | 0.80% | 0.53% | 0.13% | 1.11% | 1.14% | 0.43% | |
| AUD | -1.33% | -0.32% | -0.57% | -0.98% | -1.11% | 0.02% | -0.69% | |
| NZD | -1.36% | -0.34% | -0.60% | -0.99% | -1.14% | -0.02% | -0.71% | |
| CHF | -0.65% | 0.37% | 0.11% | -0.30% | -0.43% | 0.69% | 0.71% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Agustin Wazne
FXStreet
Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.
