Federal Reserve's Williams: U.S. Household Inequality Made December Rate Cut a 'Dilemma'

On November 10th, the President of the New York Fed, Williams, pointed out that data and conversations with community leaders suggest that many low-income families are facing an affordability crisis. The so-called "fracturing" behavior of American households may become a key factor in determining whether they support the Fed's rate cut in December. When discussing the decision for the December meeting, Williams stated, "The current situation is such that - inflation is high and shows no signs of abating, while the economy is demonstrating some resilience." Although the U.S. labor market is still "gradually cooling down," there has been "no more significant shift." Unlike earlier this year, "now no one is really discussing a recession." The U.S. economy is performing better than many people, including Williams, had feared. In April this year, he said that Trump's tariffs could push inflation to 4% and lead to economic growth being "slightly below 1%." (Jinse Finance)