On October 9, the Fed's third-in-command, New York Fed President Williams, stated that he supports further interest rate cuts this year, despite inflation having deviated from the Fed's 2% target in recent months. His reasoning revolves around the cracks that have appeared in the labor market, and Williams hopes to protect these cracks from deepening further. On Wednesday, Williams said in an interview with The New York Times that he believes the economy is not on the brink of recession. However, he pointed out that monthly job growth is slowing, along with other signs indicating that businesses are more hesitant about hiring, which are worth following. Currently, the Fed is in a dilemma. On one hand, Fed officials do not want to exacerbate the slowdown in the labor market. But they also want to avoid inadvertently fueling inflation, as tariffs imposed by President Trump have led to a resurgence of inflation. Williams stated that the Fed has the flexibility to support the labor market, as the inflation outlook does not seem as severe as it did earlier this year. Williams said.