Fed’s Williams Says It’s Not Time to Give Guidance on Rates

Federal Reserve Bank of New York President John Williams said high uncertainty should prevent policymakers from providing any strong guidance on the future path of interest rates, though his outlook still includes rate cuts in the longer term.

“Given all the different things that keep changing day to day, week to week, it doesn’t make sense for us to try to be giving strong forward guidance,” Williams told reporters Thursday on the sidelines of an event in New York City. Still, once inflation begins to ease there will be room for rate cuts to ensure policy remains only modestly restrictive.