© Reuters. John C. Williams, president and CEO of the Federal Reserve Bank of New York speaks to the Economic Club of New York in the Manhattan borough of New York, U.S., March 6, 2019. REUTERS/Lucas Jackson/File Photo
(Reuters) – New York Federal Reserve Bank President John Williams sees the U.S. central bank on track for interest-rate cuts “later this year,” despite stronger-than-expected readings on inflation and the labor market in January, according to an interview published Friday by Axios.
“My overall view of the economy basically hasn’t changed based on one month of data,” Williams said in an interview conducted Thursday, noting that inflation’s progress toward the Fed’s 2% goal can be “a little bit bumpy.”
“At some point, I think it will be appropriate to pull back on restrictive monetary policy, likely later this year,” Williams said. While a material significant change in the economic outlook could require a rethink, he said, “rate hikes are not my base case,” Axios reported.