According to the SmartFinance app, William Williams, the president of the Federal Reserve Bank of New York, known as one of the "three leaders of the Federal Reserve" and enjoying permanent voting rights on the FOMC, said on Friday that it is appropriate for the Federal Reserve to cut interest rates given the progress made in reducing inflation and cooling the job market.

Williams stated that the Federal Reserve has made "significant progress" in maintaining price stability and full employment, and the risks of achieving these two goals have reached a "balance" state.

Williams stated, "Given that the economy is currently in a balanced state, inflation is heading towards 2%, and it is appropriate to reduce the degree of policy constraints by lowering the target range for the federal funds rate."

Before making the above statement, the latest data showed that the United States added 0.142 million new jobs in August, and the data for the previous month was revised downward to 0.089 million. The unemployment rate decreased slightly to 4.2%.

It is widely expected that the Federal Reserve will cut interest rates at the meeting on September 17th and 18th. Federal Reserve Chairman Powell explicitly stated last month that the Federal Reserve is not seeking or hoping for further cooling of the labor market.

Officials have emphasized in recent weeks that they are closely monitoring the employment situation. In previous years, inflation has been their main focus. At the same time, price pressures continue to weaken.

Williams expressed confidence that inflation is continuing to move towards the Federal Reserve's 2% target and added that the labor market is unlikely to be a source of future price pressures.

Williams said, 'The risks of our two goals are now in a better balance, and policies need to be adjusted to reflect this balance.' He believes that the downward trend of inflation is broad-based and evident in the data.

Williams expects the inflation indicators favored by the Federal Reserve to slow to around 2.25% this year and to approach 2% next year.

With the rate cut almost certain to begin this month, a key question the Federal Reserve faces is how large the rate cut will be and the speed and magnitude of future rate cuts.

Although Williams did not disclose the magnitude of the first rate cut by the Federal Reserve, he stated that officials can 'adjust the policy stance over time, based on the changing data, outlook, and risks to achieving our goals,' to a neutral position that neither promotes nor restrains economic activity.

Powell also stated last month, 'The timing and pace of rate cuts will depend on the upcoming data, evolving outlook, and balance of risks.'