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MNI BRIEF: Fed's Williams Expects Interest Rates To Gradually Fall

New York Fed president says he expects the disinflationary process to continue.

New York Fed President John Williams said Tuesday he expects interest rates to come down gradually over the next couple of years, as inflation declines to the central bank's 2% target.

"The more important point is not about what happens at a given meeting, or over the rest of this year, but over the next few years," Williams told Fox Business, declining to make a prediction about how many interest rate cuts he expects this year. "I expect interest rates to come down gradually over the next couple of years" to "more normal levels." (See: MNI INTERVIEW: Quarterly Fed Cuts To Start In Dec - Reinhart)

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New York Fed President John Williams said Tuesday he expects interest rates to come down gradually over the next couple of years, as inflation declines to the central bank's 2% target.

"The more important point is not about what happens at a given meeting, or over the rest of this year, but over the next few years," Williams told Fox Business, declining to make a prediction about how many interest rate cuts he expects this year. "I expect interest rates to come down gradually over the next couple of years" to "more normal levels." (See: MNI INTERVIEW: Quarterly Fed Cuts To Start In Dec - Reinhart)

Keep reading...Show less