The U.S. Federal Reserve can still cut interest rates \u201cin the near term\u201d without putting its inflation goal at risk, New York Fed president John Williams said on Friday.<\/p>\n
Progress on inflation has \u201ctemporarily stalled,\u201d Williams acknowledged in comments prepared for delivery at a Central Bank of Chile event, and added it was \u201cimperative to restore inflation to our 2-per-cent longer-run goal on a sustained basis,\u201d from a current level that he estimates to be around 2.75 per cent.<\/p>\n
But he said price pressures are expected to ease as the impact of tariffs passes through the economy without creating persistent inflation, while the job market appears to be softening, with the unemployment rate rising in September to a 4.4-per-cent level comparable to the pre-pandemic years \u201cwhen the labor market was not overheated.\u201d<\/p>\n
The Fed needs to reach its inflation target \u201cwithout creating undue risks to our maximum employment goal,\u201d Williams said.<\/p>\n
\u201cI view monetary policy as being modestly restrictive…Therefore, I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral, thereby maintaining the balance between the achievement of our two goals.\u201d<\/p>\n
The New York Fed holds a permanent voting position on the rate-setting Federal Open Market Committee.<\/p>\n
His comments come amid debate about whether the Fed should cut rates at its Dec. 9-10 meeting, with some policymakers drawing a hard line against further rate cuts until it is clear that inflation will drop to the Fed\u2019s 2 per cent target from its current, still-elevated level.<\/p>\n","protected":false},"excerpt":{"rendered":"The U.S. Federal Reserve can still cut interest rates \u201cin the near term\u201d without putting its inflation goal…\n","protected":false},"author":2,"featured_media":299668,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-299667","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/299667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=299667"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/299667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/299668"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=299667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=299667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=299667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}