More Rate Cuts Likely Needed 'Over Time,' Fed's Williams Says.

Federal Reserve Bank of New York President John Williams stated that further rate cuts may be necessary to achieve a neutral policy stance due to balanced risks to inflation and employment. Williams emphasized that decisions on rate cuts will be made meeting by meeting based on data, as the economic outlook remains uncertain. He noted that the economy and labor market are in good shape, with a cooling demand for workers unlikely to add to inflationary pressures in the future. Williams also mentioned that while inflation is above the Fed's target, there are reasons to be confident it will reach the target, citing a slowdown in inflation rates for goods and services. [Extracted from the article]