John Williams, President of the Federal Reserve Bank of New York, said in an interview with The New York Times published today, Monday, that he expects interest rates to start falling next year.
Williams added: Inflation is declining as hoped, and unemployment is expected to rise slightly as the economy slows. As the Fed member expected the unemployment rate to rise above 4% next year.
He explained: There is a possibility to cut interest rates in early 2024, depending on the incoming economic data.
Williams' comments seem to have had little or no impact on market movement so far. Whereas, the US Dollar Index is rising near 102.12, up by 0.30% during these moments of the day's trading.
Meanwhile, gold futures are down 0.33%, at $1,970 an ounce.
While spot contracts for gold fell by 0.39% to 1935 dollars an ounce.
It comes after Fed Conservative Michelle Bowman said the Fed will likely need to raise interest rates further to bring down inflation.
Bowman revealed her support for a quarter-point increase in interest rates last month, which she attributed to the still high inflation, strong consumer spending, recovery in the housing market, and a strong labor market that contributes to fueling higher prices.
She added: We should remain ready to raise the Fed's interest rate at any future meeting if the incoming data indicates that inflation is not sufficiently declining towards the Fed's target.
