By Matt Grossman


New York Fed President John Williams said Friday that after three straight quarter-point rate cuts to end 2025, he doesn't see a pressing need to bring interest rates lower until the Federal Reserve gathers more economic data.

In an interview with CNBC, Williams said that at 3.5% to 3.75%, interest rates are still high enough to lean against inflation, which remains above the Fed's target. Weaker hiring has prompted the Fed to ease policy in order to cushion the labor market, but Williams suggested there is no rush for further adjustments.

"I don't personally have a sense of urgency to act further on monetary policy right now," Williams said. "I feel like we've got this in a pretty good place," he added.

Williams said the November inflation report published Thursday indicated some cooling in the underlying pace of price increases. But he also echoed a chorus of economists who said the report, which showed 12-month inflation's falling to 2.7% last month, was likely distorted by technical factors related to the recent government shutdown.

Without those technical hindrances, measured inflation may have been roughly one-tenth of a percentage point higher, Williams said.

The Fed next meets the last week of January. Traders' bets in interest-rate futures markets reflect roughly 4-in-5 odds that the central bank will hold rates steady, versus 1-in-5 odds of another cut.


Write to Matt Grossman at matt.grossman@wsj.com


(END) Dow Jones Newswires

12-19-25 0929ET