New York Federal Reserve Bank President John Williams said that given the increased balance of risks facing inflation and employment, the decision-making level may need to further reduce interest rates and adjust the policy rate to a neutral stance.

But Williams did not say whether he would support a rate cut at the Fed's meeting this month. He said that related decisions will be made at each interest rate meeting.

"I expect that over time, continuing to move towards a more neutral policy setting will be appropriate," Williams said at an event held by the Queens Chamber of Commerce in New York on Monday. "The policy path will depend on data. If there's anything we've learned over the past five years, it's that the outlook remains highly uncertain."

The so-called neutral interest rate refers to a level of policy that neither stimulates nor suppresses economic growth.

Williams said that the US economic situation is good and the labor market is stable. He also said that given the cooling demand for labor and the increase in labor supply, the future labor market is unlikely to add inflationary pressures.

He also said that although the inflation rate is still above the Fed's 2% target, there is reason to believe that this goal can be achieved.