Federal Reserve Bank of New York President John Williams says the central bank should wait to see more data before cutting interest rates.

Federal Reserve Bank of New York President John Williams stated that the central bank should adopt a "wait and see" approach before making adjustments to monetary policy. Williams noted that there is currently no clear science to determine if current monetary policy is sufficient to bring inflation back to the target of 2% within the next year or two. Williams attributed the current bond market movements to a strong US economy and significant investments in artificial intelligence. He noted that tariffs and rising energy prices from the war with Iran have impacted core inflation, but he expects inflation to eventually return to the target. He observed that the second-round effects of tariffs and higher energy prices have not yet broadly spread. While other officials have expressed different views, Williams remains data-dependent. He indicated that the central bank must continue to monitor incoming data to determine the next steps for the interest rate-setting body.

Sources

• Newsquawk
  Fed's Williams (Voter, Neutral) says bond market driven by strong US economy and big investments in AI
• American Banker
  Fed's Williams not swayed that a rate hike is the answer yet

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Paywall and unreadable sources

• wsj.com
  Fed’s Williams: Case for a Rate Hike Isn’t Yet Firm
• news.futunn.com
  Is a September rate hike still uncertain? Fed’s third-in-command: Action depends on incoming data
• Forex Factory
  Fed's Williams: At the end of the day, it's the Fed's job to get price stability; 2% inflation is job number one