This leans mildly hawkish-neutral. Williams is reinforcing no urgency to cut, with resilience and strong household balance sheets offsetting uncertainty. AI as a growth pillar adds to the “soft landing” narrative. Rates likely stay on hold longer, supporting USD and keeping front-end yields elevated.Summary:Williams reiterates policy is “in the right place” amid high uncertaintyEconomy described as resilient, baseline outlook remains solidHousehold balance sheets seen as strong, supported by mortgage marketAI flagged as a key medium-term growth driver, but outlook uncertainPrior Fed rate cuts in 2024–2025 described as “very constructive”Message reinforces earlier stance: steady policy, wait-and-see approachFederal Reserve Bank of New York President John Williams reinforced a steady policy message, describing the US economy as resilient and monetary policy as appropriately positioned, even as uncertainty remains elevated due to geopolitical and structural factors.In follow-up remarks to his earlier speech, Williams said the baseline outlook for the economy remains solid, with growth holding up better than expected despite ongoing headwinds. He reiterated that the current stance of policy is “in the right place,” echoing his earlier assessment that the Fed is well positioned to navigate what he characterised as an unusual and uncertain environment shaped by war-driven inflation pressures and shifting global dynamics.Williams also highlighted the strength of household balance sheets as a key pillar supporting economic resilience, noting that financial positions remain healthy, underpinned in part by a stable mortgage market. This backdrop, alongside prior policy easing, continues to provide a buffer against potential shocks to growth.On monetary policy, Williams pointed to the Fed’s rate cuts in 2024 and 2025 as having been “very constructive,” helping to stabilise the economy and maintain momentum. His comments suggest confidence that policy settings are neither overly restrictive nor in need of immediate adjustment, reinforcing the central bank’s current wait-and-see approach.Looking ahead, Williams turned to the role of artificial intelligence as a longer-term driver of economic activity. While he said AI has the potential to create substantial employment opportunities, he acknowledged that its impact over the next few years remains uncertain. He added that reduced AI-driven investment or activity would likely result in weaker overall growth, highlighting the technology’s increasing importance to the economic outlook.Taken together with his earlier remarks, Williams’ comments underscore the Fed’s current balancing act: managing near-term inflation risks linked to energy and geopolitical developments, while recognising the underlying resilience of the economy and the influence of longer-term structural forces such as AI. This article was written by Eamonn Sheridan at investinglive.com.