Bill Gross Says 'Williams Put' in Play—Expects Fed Rate Cut in December

(Seoul=Yonhap Infomax) Kyung Pyo Hong – Renowned bond investor Bill Gross interpreted recent remarks by John Williams, President of the Federal Reserve Bank of New York, as dovish and predicted that the Federal Reserve (Fed) will cut interest rates next month.

On the 23rd (local time), Gross wrote on his X account, "It seems the Fed's 'Williams Put' is now in effect."

President Williams stated on the 21st (local time) that there is still room for further adjustments to the Fed's policy rate in the near term.

Williams also noted that the inflationary impact of tariffs is expected to be transitory, adding, "The effect of tariffs on inflation will persist through the remainder of this year and into the first half of next year, after which inflation is projected to return to the 2% target by 2027."

Gross commented, "I expect the Fed to cut its policy rate in December."

He further expressed a positive outlook on mortgage REITs such as AGNC and NLY, stating, "If M&A activity picks up next year, Columbia Banking Systems (COLB) and Northwest Bancshares (NWBI) are currently attractively priced."

kphong@yna.co.kr

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