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

GateUser-6433627c · 2026-01-13T00:45:56+00:00

New York Federal Reserve President Williams expects the U.S. economy to grow healthily by 2026 and does not anticipate lowering interest rates in the short term. He forecasts a GDP growth rate of 2.5%-2.75% for 2023, with the unemployment rate stabilizing and then declining, and inflation expected to peak in the first half of the year and fall back to 2.5% for the full year.

GateUser-6433627c

2026-01-13 00:45:56

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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)

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