Federal Reserve Watch for Sept. 4: Williams Signals Rate Cut Possible If Economy Trends as Expected

03:15 PM EDT, 09/04/2025 (MT Newswires) -- New York Fed President John Williams (voter) said that it would appropriate to lower the target range for the federal funds rate if the economy evolves as expected but did not specify when that reduction should resume.

Stephen Miran, chairman of the White House Council of Economic Advisers and nominee to become a Fed governor, said in his nomination testimony before the Senate Banking Committee that he believes that Fed independence is essential for the economy and that he would take an unpaid leave of absence from his current position if approved.

Recent comments of note:

(Sept. 3) St. Louis Fed President Alberto Musalem (voter) said that monetary policy is "modestly restrictive" and is appropriate, given the still strong labor market and elevated inflation, but he cautioned that there is considerable uncertainty to the outlook, particularly downside risks to the employment mandate.

(Sept. 3) Atlanta Fed President Raphael Bostic (nonvoter) said that he views the current stance of monetary policy as only "marginally restrictive" and that he sees only one rate reduction needed in 2025 but is open to adjusting his outlook depending on the incoming data.

(Aug. 28) Fed Governor Christopher Waller repeated that he would be in favor of a 25-basis point rate reduction at the September FOMC meeting and that he believes that further rate reductions may be needed in the near term due to a weakening labor market.

(Aug. 27) In an interview with CNBC, Williams highlighted the need for central bank independence to maintain low inflation and economic stability. He said that the economy remains strong and that he expects the FOMC to lower the target for the fed funds rate over time but did not comment on whether the first cut may be at the Sept. 16-17 meeting, instead saying that he is open to a rate reduction when the data allow.

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