Fed’s Williams does not rule out possibility of rates cuts next year

• Inflation is coming down as hoped
• Expects unemployment to rise slightly as the economy cools, personally sees unemployment rate rising above 4% next year
• Does not rule out possibility of lowering rates in early 2024
• It all depends on the economic data

Well, that’s one of the first angles by the Fed in agreeing to the current market pricing as seen here. They have been adamant that rates are to hold higher for longer and keep in more restrictive territory, so this is a bit of an early take. But if they keep interest rates unchanged in September again and inflation data continues to point downwards, this may gather more traction.