NEW YORK (Reuters) – Federal Reserve Bank of New York President John Williams said Friday that he expects the central bank to deliver more interest rate cuts but noted what happens will be driven by incoming data, amid a policy that’s still providing restraint on the economy’s momentum.
“The baseline trajectory is moving down towards neutral rates,” Williams said. “We need to be data dependent and we have time to really assess the data, assess what’s happening,and come to the best judgments based on the data, the outlook and the risks to achieve our goals,” he said, adding “I think we’re in a great place, well positioned” for what lies ahead.
He spoke on CNBC Friday in the wake of this week’s Federal Open Market Committee meeting, which saw the officials met market projections and cut their overnight target rate by a quarter percentage point, to between 4.25% and 4.5%. The Fed also dialed back expectations of how much it will cut rates next year.
(Reporting by Michael S. Derby)
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