Fed’s Williams Says He Sees Room for Rate Cut in ‘Near Term’ (2)

Federal Reserve Bank of New York President John Williams said he sees room to lower interest rates again in the near term as the labor market softens, reviving investor expectations for a December rate cut.

In the text of a speech he delivered Friday in Santiago, Chile, Williams said downside risks to employment have increased while upside risks to inflation have eased. Investors boosted the odds of a rate cut at the Fed’s Dec. 9-10 policy meeting to around 70% after his comments, according to pricing in futures contracts, up from around 35% earlier.

“I ...