Fed's Williams: Expect the Fed to cut interest rates further

New York Fed President John Williams said on Monday that the Federal Reserve may further lower its interest rate target as inflation pressures continue to cool. "Monetary policy remains in a restrictive range to support a sustainable return to the 2% target for inflation," Williams said in a speech at a meeting of the Queens Chamber of Commerce in New York. Looking ahead, "I expect that it will be appropriate to continue to move to a more neutral policy setting over time," Williams said, and the policy path will depend on the data. If we have learned anything over the past five years, it is that the outlook remains highly uncertain. Williams did not give clear guidance on the timing of a rate cut or whether he thinks the Fed will lower its interest rate target at this month's FOMC meeting.