NEW YORK (Dec 2): Federal Reserve (Fed) Bank of New York president John Williams said on Monday the US central bank is likely to lower its interest rate target further over time as inflation pressures continue to cool.

“Monetary policy remains in restrictive territory to support the sustainable return of inflation to our 2% goal,” Williams said in the text of a speech to be delivered before a gathering of the Queens Chamber of Commerce, held in New York.

Looking ahead, “I expect it will be appropriate to continue to move to a more neutral policy setting over time,” Williams said, adding “the path for policy will depend on the data. If we’ve learned anything over the past five years, it’s that the outlook remains highly uncertain.”

Williams offered no firm guidance about the timing of rate cuts and whether he believes the Fed will lower its interest rate target, now set at between 4.5% and 4.75%, at the Federal Open Market Committee meeting this month.

Markets have braced for more rate cuts amid guidance of easier policy from central bank officials, but new uncertainties over President-elect Donald Trump's policies have clouded that outlook. In a speech on Monday, Fed governor Christopher Waller said “at present I lean towards supporting a cut to the policy rate at our December meeting” depending on how the data come in.

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