Federal Reserve President John Williams said that slowing job growth and easing inflation risks were key reasons behind last week’s Fed rate cut.
Williams noted that inflation is currently “paused” above the Fed’s target but said he is increasingly confident that price pressures will continue to slow.
He added that as the impact of tariffs is absorbed by the broader economy next year, inflation could decline further.
On the labor market, Williams said conditions have not deteriorated sharply but are clearly cooling, as shown by official employment data and recent consumer and business surveys.
Overall, he said the changing balance of risks between inflation and employment supported the Fed’s decision to cut rates last week.
