Monetary Policy and Markets

New York Fed President John Williams said Friday he sees room for a near‑term adjustment to bring policy closer to neutral, a strong signal the Fed could cut rates at its Dec. 9–10 meeting. His remarks at the Central Bank of Chile’s conference sent market odds of a December cut to 73% (from 39% Thursday), lifted the S&P 500, and rallied Treasuries, even as Dallas Fed’s Lorie Logan cautioned against another cut without clearer evidence on inflation and the labor market.