NY Fed's John Williams says bank will 'ignore the politics,' make 'data dependent' rate decisions
FOX Business' Edward Lawrence talks rate trajectory, 2024 election with Williams
The Fed must 'ignore the politics, focus on getting our job done': John Williams
FOX Business' Edward Lawrence speaks with Federal Reserve Bank of New York President and CEO John Williams on the central bank's rate trajectory, building a stronger economy and fiscal-based political concerns ahead of November.
Following the Federal Reserve's latest meeting and rate decision, the central bank's New York president and CEO discussed when a cut may be coming and what the November election means for the U.S. economy.
"Our decisions are going to be data dependent. It could be really decided by what we're seeing in the economy, what we're seeing in the inflation data," Federal Reserve Bank of New York's John Williams told FOX Business' Edward Lawrence in an exclusive interview on Tuesday. "So the answer is it depends. But I think that things are moving in the right direction."
Last week, the Fed held rates steady for the seventh consecutive time and suggested there will only be one cut made this year. In their post-meeting statement, policymakers left the door open to rate cuts but stressed they need "greater confidence" inflation is coming down before lowering borrowing costs.
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"I've been in the Fed nearly 30 years, and throughout that time, what I've seen my colleagues do is really focus on our job, do the best analysis we can and make the best decisions we can for the American economy," Williams said. "We just have to stay on that, ignore the politics and all that. Focus on getting our job done. That's what we need to do in order to be successful."
NY Fed's John Williams says the central bank will make "data dependent" decisions on rate decisions. (Getty Images)
"I expect interest rates to come down gradually over the next couple of years," he added, "reflecting the fact that inflation is coming back to our 2% target and the economy is moving in a very strong, sustainable path."
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Noting that inflation data and rates have had their "ups and downs," Williams also commented on how the economic environment has impacted housing affordability.
"Incomes are growing. That's part of the affordability picture for people being able to buy or rent homes," the president and CEO said. "The job, No. 1, is make sure that we get inflation back to 2%. High inflation, it's obviously painful for everybody… And I think that will help deal with the affordability and housing and the mortgage rate issues there."
FOX Business' Megan Henney contributed to this report.
