America News Agency

Speaking at an event organized by the New Jersey Bankers Association in Jersey City, Williams said, “As we enter 2026, monetary policy is in a good place.” He noted that the Federal Open Market Committee, which sets interest rates, has “shifted the moderately restrictive stance of monetary policy toward a neutral position.”

Williams stressed that bringing inflation back to 2 percent is “essential,” but that it is also necessary to “avoid creating unnecessary risks for the labor market.” He added that in recent months, as the labor market has cooled, downside risks to employment have increased, while upside risks to inflation have eased somewhat.

Williams’ remarks marked his first public comments since the Fed cut its benchmark interest rate by a quarter point on December 10 to a range of 3.50–3.75 percent, seeking to balance rising risks to the labor market with persistently elevated inflation above the 2 percent target.

Fed Chair Jerome Powell told reporters after the meeting that the future of monetary policy remains uncertain and did not give a clear indication as to whether the central bank would cut rates again at its next meeting in late January.