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flag Fed's Williams says policy is near neutral, no urgent rate cuts needed despite cooling jobs.

flag New York Fed President John Williams said on January 12, 2026, that U.S. monetary policy is near neutral and well-positioned to guide inflation back to the 2% target without harming the labor market, with no immediate need for rate cuts despite a cooling job market. flag He projected 2026 GDP growth of 2.5% to 2.75%, inflation peaking at 2.75% to 3% before easing to 2.5% and returning to 2% by 2027, and unemployment stabilizing. flag Williams emphasized a data-dependent approach, warning against political interference, as the Fed prepares for its January 27–28 meeting.

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