News

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

John Williams has opined that there will be more Fed rate cuts this year as there is more downside risks to the labor market.
Published by
Fed’s John Williams Backs More Rate Cuts This Year Amid Labor Market Concerns

Highlights

  • The New York Fed president said that he expects more rate cuts this year.
  • Fed's Mary Daly also signaled support for further rate cuts due to the softening labor market.
  • Fed Governor Michael Barr called for caution in adjusting monetary policy due to inflation risks.

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).

Advertisement

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.

Advertisement

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.

Advertisement

Fed’s Mary Daly And Michael Barr Also Comment On Monetary Policy

Speaking at the Silicon Valley Directors Exchange, San Francisco Fed President Mary Daly also echoed Williams’ sentiments, stating that inflation has come in much less than she feared and that her focus has shifted to the labor market. She noted that the September Fed rate cut and the rate cuts they project by year-end are meant to risk-manage the softening in the labor market.

However, Fed Governor Michael Barr, who spoke on the economic outlook at the Economic Club of Minnesota Luncheon, was more concerned about the inflation risks. He stated that the FOMC should be cautious about adjusting monetary policy, warning that the tariffs could create persistent inflation.

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
Share
Boluwatife Adeyemi

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.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and 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.
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.

Recent Posts

  • News

Pi Network Dedicates 350,000 Active Nodes for AI With OpenMind Partnership

In the latest development, the Pi Network Ventures announced its investment in artificial intelligence (AI)…

October 30, 2025
  • News

Breaking: Trump Cuts Tariffs as US-China Reaches 1-Year Trade Deal, Bitcoin Rebounds

US President Donald Trump reduced tariffs on China after a meeting with President Xi Jinping,…

October 30, 2025
  • News

Binance Responds to Charges of Supporting Trump-Family Crypto USD1 and WLFI Soon After CZ Pardon

US lawmakers have started accusing crypto exchange Binance of supporting Trump family projects like World…

October 30, 2025
  • Bitcoin News

SpaceX Makes Third Huge Bitcoin Transfer in 10 Days, Is Elon Musk Planning Something Big?

Elon Musk’s space exploration company, SpaceX, moved another 281 Bitcoin on Thursday, according to blockchain…

October 30, 2025
  • News

Crypto Market Tumbles as Jerome Powell Says December Rate Cut ‘Far From Certain’

The crypto market turned sharply lower on Tuesday after Federal Reserve Chair Jerome Powell said…

October 30, 2025
  • News

FOMC Meeting: Federal Reserve Lowers Interest Rates by 25 Bps in Second Cut of the Year

The U.S. Federal Reserve has announced it has lowered the interest rate by another 25…

October 29, 2025