According to Jinshi data, New York Fed President Williams stated that as time goes on, interest rate cuts will become appropriate, but he did not specify the timing or pace. He mentioned at the New York Economic Club event that if progress continues on the dual mandate goals, it would be appropriate for interest rates to shift to a neutral stance.
Williams pointed out that the Federal Reserve faces a delicate balance regarding employment and inflation risks. He emphasized the need to maintain a balance in the labor market to prevent widespread inflation caused by tariff impacts while avoiding overly tight policies that could affect the maximum employment mission. He added that the impact of tariffs on inflation is not as severe as expected, but it will still take time to observe.