Fed’s Williams not ready to say what Fed should do at next meeting

Federal Reserve Bank of New York President John Williams said on Monday that while it was clear interest rates are likely go down over time, he could not yet say what the central bank’s next move will be.

“My view is that monetary policy is still restrictive and I think it’s appropriate for policy to be somewhat restrictive given the inflation” that still sees price pressures above the 2% target, Williams told reporters after a speech in New York.

“The direction of travel is…toward more neutral stance of policy over time,” the official said, noting “if the data come in consistent with my outlook we do need to adjust policy” toward a lower rate.

Markets are debating whether the Fed will lower rates at its policy meeting this month as it adjust monetary policy to a cooling in inflation pressures.