Fed independence is very important.Has nothing to say an allegations that situation around Gov. CookGDP has slowed in the 1st half of the year.I expect that to continue for the rest the yearThe economy is in an adjustment processExpects growth to be 1% to 1 1/2% annuallyThe state of the labor market is solid.Some of the slowdown in the payrolls is in the supply of the labor market.We are seeing slower supply and slower demand.The hard thing is to see if one is slowing faster than the other.Other indicators have gently softened over the last year but still growing.Wage growth is a good indicator of labor.The underlying inflation putting tariffs aside have been coming down gradually.We have seen a slowing of housing inflation. We are watching service inflation carefullyOutside tariffs we have seen inflation slowing but still above 2%.I do think that we have to move interest rates lower to a more normal level.Inflation and employment are moving back into balance. The primary goal is to get inflation down.I do think we have a modestly restrictive policy. Can policy be somewhat less restrictive?Fed has the driven by the data.Do not want the labor market to weaken too much, but want inflation back to 2%.I definitely think that every meeting from my perspective is live.We'll have to see how the data plays out.New York Fed President John Williams, a permanent voting member of the FOMC, emphasized the importance of central bank independence while declining to address the situation involving Governor Cook. He noted that GDP growth slowed in the first half of the year and is likely to remain subdued at 1–1.5% annually as the economy continues its adjustment process. Williams described the labor market as solid, though payroll growth has moderated due to both slower supply and demand, with the relative pace of each still uncertain. Other indicators have softened but remain in positive territory, and he highlighted wage growth as a key measure of labor conditions. On inflation, Williams said that aside from tariff effects, underlying pressures have been gradually easing, including in housing, though service inflation requires close monitoring. Inflation remains above the 2% target but is trending lower. He judged current policy to be modestly restrictive and suggested it could become somewhat less restrictive as inflation and employment move back into balance. Stressing a data-dependent approach, Williams underscored that every meeting is “live,” with the Fed focused on lowering inflation without excessively weakening the labor market.Bias assessment: Williams’ comments lean slightly dovish, as he acknowledged policy is restrictive, pointed to the need for rates to move lower over time, and emphasized protecting the labor market. However, his firm focus on restoring inflation to 2% keeps the stance balanced overall. He is saying... there is a chance for September..The markets are currently pricing in and 84% chance of a September cut. Will be influenced by the employment data and the inflation data released in September ahead of the FOMC rate decision.Come to investingLlive.com daily - and often - for your trading/investing support (formally forexlive.com). This article was written by Greg Michalowski at investinglive.com.