Clarifying the bottom line for interest rate cuts? New York Fed President: Anchoring inflation expectations is the "cornerstone" of central bank operations

New York Federal Reserve President Williams emphasized that stabilizing inflation expectations is the "cornerstone" of central bank operations. He pointed out that during times of high uncertainty, maintaining a good inflation expectation anchor is crucial. Williams's remarks reflect the Federal Reserve's challenges in balancing price stability with achieving full employment. Despite facing rising unemployment rates and inflation risks, the Federal Reserve decided to keep the benchmark interest rate unchanged, waiting for clearer data to assess the impact of tariffs on the economy