Fed’s Williams Says Monetary Policy Now Well Positioned for 2026

Federal Reserve Bank of New York President John Williams said monetary policy is well positioned for next year following last week’s interest-rate reduction, amid increased risks to employment and somewhat-lessened inflation risk.

“Monetary policy is very focused on bringing these risks into balance. To that end, the FOMC has moved the modestly restrictive stance of monetary policy toward neutral,” Williams said Monday in remarks prepared for an event in Jersey City, New Jersey, referring to the Federal Open Market Committee. “With these actions, monetary policy is well positioned as we head into 2026.”

John Williams

Photographer: Michael Nagle/Bloomberg

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