John Williams, President of the New York Federal Reserve, has expressed support for further interest rate cuts this year to safeguard the labor market, despite inflation diverging from the 2% target. Williams highlighted concerns over slowing job growth and cautious hiring practices, emphasizing the need to prevent further labor market deterioration. In an interview, Williams noted that while the economy is not nearing a recession, the Federal Reserve faces a challenge in balancing labor market support with inflation control, especially considering the inflationary effects of tariffs. He anticipates these effects will lessen over time and remains committed to action at the Fed's upcoming meeting, regardless of potential data disruptions from government shutdowns.