New York Fed’s Williams says September rate cut hinges on next data

New York Federal Reserve Bank President John Williams stated that interest rates could potentially be lowered, but that upcoming economic data would be crucial for determining the appropriateness of a cut at the September meeting.

In an interview with CNBC today, Aug. 27, Williams said that every meeting is considered open to the possibility of changing the benchmark interest rate.

He noted that economic risks have become "more balanced," and that the final judgment will depend on what forthcoming data on the labor market and inflation reveal.

Federal Reserve Chairman Jerome Powell indicated last week that the weak labor market, along with economic developments, could justify a rate hike.

However, subsequent statements from officials, including Williams, who holds permanent voting power on the monetary policy committee, emphasized the need to wait for new data before making a decision.

In another context, Williams declined to comment directly on the accusations made by President Donald Trump against Federal Reserve Board Member Lisa Cook, but praised her integrity and commitment to the US central bank's mission.