By Nick Timiraos 

WASHINGTON -- Federal Reserve Bank of New York President John Williams said the central bank is comfortable with how the economy looks after cutting its benchmark rate three times this year -- adding the Fed isn't committed to any particular policy path in the months ahead.

"The economy is in a very good place," Mr. Williams said at a meeting of the brokerage-industry trade group Securities Industry and Financial Markets Association, or Sifma. "I think we have monetary policy in the right place. The key thing is we're not locked into any particular decision."

Mr. Williams also is vice chairman of the rate-setting Federal Open Market Committee. It met at the end of October and cut its short-term benchmark rate for the third time since July to a range between 1.50% and 1.75%. Officials lowered rates to cushion the economy against the risks of a sharp slowdown from decelerating global growth and a drop in business investment.

Most of his colleagues, including Fed Chairman Jerome Powell in congressional testimony last week, have said the Fed can hold steady for now, indicating the central bank is likely to leave its rate unchanged at the final meeting of the year, on Dec. 10-11.

Mr. Williams stressed the importance of the Fed's flexibility this year. After raising its benchmark four times last year to guard against undesirable levels of inflation or financial bubbles, the Fed scrapped plans early this year to keep lifting rates. It then lowered rates beginning in July.

"We've proved that when the economic facts changed, we change our view," Mr. Williams said during a moderated question-and-answer session.

Write to Nick Timiraos at nick.timiraos@wsj.com

 

(END) Dow Jones Newswires

November 19, 2019 09:50 ET (14:50 GMT)

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