Fed's Williams: Future Fed rate cuts more about adjusting to lower inflation

Kitco Media
By Reuters
Published:
Updated:
Reuters
NEW YORK, Feb 8 (Reuters) - New York Federal Reserve President John Williams said his expectations of future central bank rate cuts is driven mostly by a need to respond to the likelihood of lower levels of inflation in the future.


Williams, speaking at a Wall Street Journal events, said the prospect of a lower federal funds rate next year is driven mostly by monetary policy adjusting to a weaker inflation environment. He said that overall, however, monetary policy will need to be restrictive of growth for a few years, which he doesn't see as being in conflict with lower future rates.
(Reporting by Michael S. Derby)

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