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Federal Reserve's Williams: Signs of labor market weakness lead me to support a rate cut, with an estimate of the real neutral rate at 0.75%.

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2025-09-29 20:48:45
The Federal Reserve's Williams said on Monday that initial signs of weakness in the labor market prompted him to support a rate cut at the latest Fed meeting. Williams said: "It makes sense to cut rates slightly" and that "a modest easing of some tightening measures" would help boost the job market and put some downward pressure on inflation, which is still on the high side. In addition, he also said that his model's estimate of the real neutral rate is 0.75%, but he added that the neutral rate is important, but policy is data-driven.
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