Fed's Williams Says Cooling Labor Market and Easing Inflation Risks Justified Last Week's Rate Cut

Federal Reserve official Williams said on Dec. 16 that a cooling labor market and easing inflation risks underpinned the Fed's decision to cut interest rates last week, BlockBeats reports citing Jin10. In his first public comment on the rate move, he said he is increasingly confident that price increases will continue to slow, even though inflation remains temporarily above the Fed's target. Williams noted that as the impact of tariffs is absorbed more broadly by the economy next year, inflation may keep declining, and that employment has not deteriorated sharply but is gradually softening—a trend reflected in official statistics as well as consumer and business surveys.