Federal Reserve Bank of New York President John Williams said on Wednesday that the level of interest rates that’s neutral in its impact on the economy likely hasn’t risen much.

John Williams, president of New York Federal Reserve Bank, said more time was needed for the central bank to reach its 2% inflation goal, even as significant progress has been made in bringing the rate down to around 2.

Inflation in the US has decreased from its pandemic-era highs, but more efforts are necessary to bring consumer prices down to the desired level, said John Williams, president and CEO of the Federal Reserve Bank of New York.

In the speech — which focused on the uncertainty of monetary policy amid global shifts in climate, technology and supply chains — Williams highlighted the importance of “well-anchored” inflation expectations. He also pointed to the “perennial challenges of measuring the so-called star variables such as r-star.”

New York Fed President John Williams defended the central bank’s delayed response to the outbreak of inflation in 2021 — saying that policymakers were grappling with extreme downside threats to the economy and financial markets in an atmosphere of tremendous uncertainty.

Federal Reserve Bank of New York President John Williams said he continues to believe price pressures are moderating back to the levels targeted by the central bank, in comments made on Sunday. "I'm confident that we at the Fed are on a path to achieving our 2% inflation goal on a sustained basis,