MNI BRIEF: Williams Says Fed Will Eventually Cut Rates

Federal Reserve Bank of New York President John Williams on Monday said the central bank will eventually lower rates but for the time being it is steady as she goes.

The economy is moving back to better balance, "growing somewhat slower," and Friday's employment report showing employment increased by 175,000 in April "is consistent with what we've been seeing and what I think we need to see," said Williams at a Milken Institute conference noting real wage growth is also improving. "Eventually I think we'll have rate cuts," he said, noting interest rate policy will be based on the totality of the data. (See: MNI INTERVIEW: Fed Cuts Timeline Pushed Back - Reinhart)

Williams said the Fed's balance sheet wind-down has gone smoothly.