Fed’s Williams Urges Caution on R-Star Estimates, Declines Policy Outlook, Affirms Cook’s Integrity Amid Court Standoff

Federal Reserve Bank of New York President John Williams urged caution in relying on R-star (neutral interest rate) estimates, noting that data does not indicate a notable rise in the R-star level. Williams declined to provide any outlook on monetary policy. Regarding the ongoing controversy involving Federal Reserve Governor Lisa Cook and former President Donald Trump, a Federal Reserve spokesperson stated that the central bank will abide by any court decision related to the matter. Williams also refrained from commenting further on the allegations against Cook but affirmed that she has always brought integrity to the Federal Reserve. Additionally, Williams mentioned he does not have a reliable estimate for the breakeven payroll tax rate.