According to Nick Timiraos, the sideline of the Federal Reserve, William Williams, the third in command of the Federal Reserve and the president of the New York Fed, suggested that if inflation continues to slow down in the near future, there may be reason to cut interest rates in the coming months, but will not cut interest rates at the Federal Reserve meeting two weeks later.

Williams noted that inflation data in the past three months "has brought the Fed closer to the expected trend of falling inflation. These are positive signs. I hope to see more data to gain further confidence that inflation is moving steadily toward our 2% target."

The president of the New York Fed also said there were signs that the U.S. labor market was gradually cooling, and his remarks indicate the Fed may consider lowering interest rates at its mid-September meeting, provided there are no major economic surprises.

Federal Reserve officials have hinted that they are closer to cutting interest rates, although most, including Federal Reserve Chairman Powell, have not provided any guidance on when to act. Policymakers will hold their next meeting on July 30-31 and are expected to maintain rates at 5.25-5.5%.

Most investors bet they won't start cutting interest rates before the September meeting, but the Fed may set a timetable for rate cuts at its July meeting, given new progress in easing price pressures, including a surprise drop in inflation in June.

Williams said, "I think the current policy stance is operating well. If we get more data of this kind, I think I would be more confident that inflation is sustainably moving towards our 2% target."

Federal Reserve officials said in June that they were waiting for "greater confidence" that inflation was sustainably slowing towards the Fed's 2% target before starting to cut rates. They have kept rates at their highest level in over 20 years for nearly a year.

Dammond, Trump's Treasury candidate and CEO of JPMorgan, said the Federal Reserve should be patient with the next interest rate adjustment to consider the possibility of rising inflation again in a turbulent world.

Dammond said, "Inflation is moving in the right direction. But it would be better if the Fed waited a little longer. I think there are many reasons why future inflation could rise again: increased government spending, world remilitarization, large investments in green economy, and structural adjustments in trade. "

Edited by Jeffrey