New York Federal Reserve President John Williams has signaled his support for holding rates steady following three cuts this year. This comes as crypto traders price in the FOMC opting against making another Fed rate cut at the January 2026 meeting.
John Williams Signals Support Against More Fed Rate Cuts For Now
During a CNBC interview, the New York Fed president said he doesn’t feel a sense of urgency to act further on monetary policy right now because he thinks the cuts have positioned them well. “I want to see inflation come down to 2% without doing undue harm to the labor market. It’s a balancing act,” he added.
Williams is the latest Fed official to comment on monetary policy since the FOMC meeting earlier this month, when the committee made the third Fed rate cut of the year. However, the Fed now looks set to pause on the easing cycle as the median projection is only one 25 basis points (bps) cut next year.
Fed officials have continued to offer differing views on monetary policy, especially regarding their dual mandate of inflation and the labor market. Fed Governor Chris Waller recently stated that the labor market is signaling they should make more cuts, as it is “very soft.” He also mentioned that he doesn’t expect inflation to reaccelerate.
Meanwhile, Williams also commented on this week’s job and inflation data, stating that they reflect distortions stemming from the government shutdown in October. However, he noted that the figures suggest that inflation continues to trend towards their 2% goal and that the labor market is cooling, although they have changed his outlook, opting against further Fed rate cuts for now.
As CoinGape reported, the U.S. jobs data shows that nonfarm payrolls and the unemployment rate rose beyond expectations in November. Meanwhile, the U.S. CPI and core CPI came in at 2.7% and 2.6%, respectively, way below expectations.
Crypto Traders Bet Against A January Cut
Polymarket data shows that crypto traders are currently betting against another Fed rate cut at the January 28 FOMC meeting. There is currently a 77% chance that the Fed will keep interest rates unchanged, while there is a 21% chance of a 25 bps cut.
Source: PolymarketCME FedWatch data also shows that the Fed is likely to hold rates steady at the January meeting. There is a 73% chance that rates will remain unchanged after the meeting, and a 27% chance of a 25 bps cut.
However, it is worth mentioning that crypto traders are betting on the Fed making more cuts than the median projection for 2026. There is currently a 22% chance of 2 Fed rate cuts next year and a 19% chance of three cuts.
Source: PolymarketSource: https://coingape.com/feds-williams-says-no-urgency-to-cut-rates-further-as-crypto-traders-bet-against-january-cut/
