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“Markets Rebound as NY Fed’s John Williams Signals Support for a “Near-Term” Rate Cut” 🚨🚨

Financial markets surged Friday after New York Fed President John Williams signaled he supports additional monetary easing in the “near term,” reinforcing expectations that the Federal Reserve could cut rates as soon as next month.

Speaking in Chile, Williams said he “fully supported” the Fed’s recent rate cuts and believes more easing may be needed to strike the balance between bringing inflation back to 2% and protecting employment.

He emphasized the Fed’s dual mandate, stating:

“Looking ahead, it is imperative to restore inflation to our 2 percent longer-run goal on a sustained basis. It is equally important to do so without creating undue risks to our maximum employment goal.”

Williams added that he sees “room for a further adjustment in the near term” to move policy closer to neutral—remarks that immediately rippled through markets.

Following the comments, Bitcoin (BTC) rebounded sharply, jumping from below $81,000 to nearly $84,000, clawing back a portion of its earlier losses. Equity markets also flipped positive, with the SPDR S&P 500 ETF (SPY) moving from down 0.5% to up 0.5%.

Event contracts showed the probability of a December rate cut doubling from 30% to around 60% almost instantly after the remarks hit the wires. These contract markets, offered via Robinhood Derivatives with probabilities sourced from KalshiEx and ForecastEx, often react more quickly than traditional fixed-income markets.

Williams’ words attract particular attention because the New York Fed president holds a permanent vote on the Federal Open Market Committee (FOMC), making him one of the most influential voices in monetary policy.

Rate-cut expectations had already been rising after new labor data showed the U.S. unemployment rate ticking up to 4.4% in September, the highest reading since October 2021. Williams’ comments further solidified the market’s view that the Fed is preparing to ease policy to support a softening labor market.