Williams, a Federal Reserve official and Powell ally, said, "The labor market conditions I have observed over the past year can be described as 'mild and gradual cooling', but overall it

CoinFeed reported on August 2 that according to Jinshi, Federal Reserve official and Powell ally Williams said, "The labor market conditions I have observed over the past year can be described as 'mild and gradual cooling', but overall it remains stable." Although the unemployment rate rose only slightly to 4.2% in July (4.1% in June), the relatively weak non-farm data provided room for Powell to promote a consensus on interest rate cuts. Williams pointed to the significant downward revisions to job growth in May and June as the real focus of the report. He said, "This information is crucial for understanding the trajectory of labor supply and demand, as well as the cooling of labor market momentum." Regarding the possibility of a September rate cut, Williams expressed caution, declining to endorse the market's expectations, which had once reached 80%, of a rate cut. He said, "The challenges facing market participants are the same as those we face as policymakers. I think the market's reaction to the signals is understandable." Williams expects U.S. economic growth to slow to around 1% this year, but believes the economy is expected to rebound in 2026.