Ready to start the rate reduction process

The President of the Federal Reserve Bank of New York, John Williams, said on Friday that they are ready to start the process of cutting interest rates, according to Reuters.

Key recommendations

“Monetary policy may be moved to a more neutral stance depending on the data.”

“Fed policy has been effective in restoring price stability.”

“Labor market in better balance, not main source of inflation.”

“Risks to the outlook include further weakening of the labor market.”

“Risks to the economy include slowing global growth.”

“US GDP likely 2%-2.5% for this year”.

“The unemployment rate is likely to be around 4.25% by the end of the year.”

“In the long term, unemployment is expected to settle around 3.75%.

“Further cooling of inflation is expected, inflation at 2.25% this year, close to 2% next year.”

“Confidence Growing That Inflationary Pressures Are Easing”.

“Inflationary expectations remain well anchored.”

“Unemployment rate remains low despite growth.”

“Cooling in Labor Market Retreat Due to Overheating Conditions.”

Market reaction

The US dollar index showed no reaction to the comments and was last seen trading flat on the day at 101.05.