Investing.com — Federal Reserve Bank of New York President John Williams on Monday signaled support for more rate interest rate cuts over time as monetary policy remains restrictive.
“I expect it will be appropriate to continue to move to a more neutral policy setting over time,â€� Williams said in prepared remarks to be delivered before a gathering of the Queens Chamber of Commerce, held in New York.
The need for further rate comes as the Fed in September kicked off its rate cycle, charting a course toward a neutral level of rates – one that neither stimulus nor weighs on economic growth.
The New York Fed chief didn’t specify whether he supports a December rate cut, but continued to back a data-led approach to monetary policy decisions, acknowledging that “the outlook remains highly uncertain.â€�
In the wake of concerns about why the Fed is cutting rates at a time when the economy doesn’t appear to be struggling, Williams pointed to rapid supply growth, driven by growth in the labor force and productivity, that was outpacing demand, creating the need for the Fed to maintain balance.
“And now that we’ve achieved that balance, our job now is to ensure the risks remain in balance,” he added.
