Fed’s John Williams Backs More Rate Cuts This Year Amid Labor Market Concerns

Boluwatife Adeyemi
5 hours ago
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
An image of John Williams and his opinion on more Fed rate cuts

Highlights

  • The New York Fed president said that he expects more rate cuts this year.
  • He indicated that the downside risks to employment is more concerning than the inflation risks.
  • The Fed is expected to make a 25 bps rate cut this month.

New York Fed President John Williams has shown his support for additional Fed rate cuts this year. The Fed official alluded to the weakening labor market, suggesting it should take priority over upside risks to inflation right now. The crypto market also continues to price in additional rate cuts this year, which has contributed to a recent rally that pushed Bitcoin to a new all-time high (ATH).

John Williams Backs More Fed Rate Cuts This Year

The New York Fed president said during a New York Times interview that he expects lower rates this year, indicating that he would vote in favor of additional cuts. However, he refused to commit to the number of further cuts this year, noting that it will all depend on the data.

John Williams’ support for more Fed rate cuts comes amid concerns of a weakening labor market. The Fed President noted that the shift over the past few months has been on the employment side rather than in the inflation data. He added that he is very focused on the risks of a further slowdown in the labor market.

As CoinGape reported, the FOMC minutes showed that most Fed officials judged it appropriate to make further Fed rate cuts by year-end due to the slowdown in the labor market. This was also what prompted the first rate cut of the year last month, as the recent jobs data showed that the labor market wasn’t as strong as most believed.

Focus Should Be On The Labor Market

In the interview, Williams suggested that their focus should be more on the labor market at the moment. He admitted that inflation was still above their 2% target but that over the past year, they have seen underlying inflation move toward their goal. On the other hand, the Fed president noted that the totality of the data indicates the labor market has cooled over the past year, possibly warranting further Fed rate cuts.

The New York Fed president joins Fed Governors Michelle Bowman and Stephen Miran, who have indicated that their colleagues should be paying more attention to the labor market than to inflation. Miran recently said he is more “sanguine” about the inflation outlook than most of his colleagues, even as he advocates for a series of 50-basis-point (bps) cuts.

CME FedWatch data shows a 94.6% chance that the Fed will cut rates by 25 bps at the October 29 meeting. Meanwhile, there is also a 79.8% chance that they will lower rates again by 25 bps at the December 10 FOMC meeting.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.