Fed’s Williams Says Rates Will Need to Be Lower ‘At Some Point’

Federal Reserve Bank of New York President John Williams said interest rates will need to come down “at some point” if inflation returns to the US central bank’s 2% target, as he expects.

“We will at some point need to be lowering interest rates to reflect the fact that inflation is lower,” Williams told reporters Monday after a speech in New York City. “Inflation is higher this year than previously expected, so that pushes off a date of lowering interest rates, in my view, but it doesn’t change that basic story.”

The Fed left its benchmark interest rate unchanged last ...