The Fed's "Number Three" hints there is no reason to cut interest rates in the short term

On January 13, New York Federal Reserve President Williams stated on Monday that he expects the U.S. economy to maintain healthy growth through 2026 and hinted that there is no reason to cut interest rates in the short term. Williams said he is “quite optimistic” about the economic outlook. He forecasts this year’s GDP growth rate to be between 2.5% and 2.75%, with the unemployment rate stabilizing this year and then declining in the following years. Regarding inflation, Williams indicated that price pressures are expected to peak between 2.75% and 3% in the first half of this year, then fall back to 2.5% for the rest of the year, and he expects the inflation rate to return to 2% by 2027. (Jin10)