Fed's Williams ;More rate cuts likely needed ‘over time’

Federal Reserve Bank of New York President John Williams said on Monday that the Fed officials will likely need to cut the interest rates further to move policy to a neutral stance now that risks to inflation and employment have become more balanced, per Bloomberg.  

Key quotes

One could argue a case for skipping a rate cut in December, will be watching data closely to decide.

Policy is restrictive enough that a Dec cut still allows ample scope to slow pace of cuts later if needed.

Forecasts show inflation on the path to 2% in medium term.

Money policy remains 'significantly restrictive’.

Still 'a ways to go' in reducing rate to neutral.

The speed and timing of cuts to be determined by economic conditions.

When I look at a broader range of labor market data, it tells a fairly consistent story over the past year about moderating demand relative to supply.

Recent data on inflation indicate that progress may be stalling.