Thursday, Federal Reserve Bank of New York President John Williams underlined that the central bank may decrease its interest rate objective.
"I do expect us to cut interest rates later this year," Williams told the Citizens Budget Commission 92nd Annual Gala in New York.
"I think that makes sense with inflation coming down, the economy being in better balance, that we're going to move interest rates back to more normal levels," the official said, adding "there's no sense of urgency to do that."
Williams stated "I think we've got monetary policy in good place" and now it's about obtaining confidence that inflation is dropping to 2%. Williams also doesn't see the economy causing the Fed to raise rates again.
"Based on what I see now we don't need to tighten monetary policy further," he said. He said, "obviously, if the outlook changes, if the economic conditions change pretty significantly, materially, you know, we'd have to, I'd have to rethink that."
Williams virtually repeated his Long Island statement from Wednesday.
The Fed is projected to decrease its interest rate target range of 5.25% to 5.5% later this year, but solid economic activity and an uneven inflation retreat have delayed policy easing.
Williams said in the appearance that the U.S. economy is recovering from the coronavirus outbreak and that the current business cycle is different from previous ones. He praised the economy's resilience.
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