Federal Reserve Bank of New York President John Williams said on Friday that they are ready to start the process of rate cuts, per Reuters.

Key takeaways

"Monetary policy can be moved to more neutral stance depending on data."

"Fed policy has been effective in restoring price stability."

"Job market in better balance, not main source of inflation."

"Risks to outlook include further weakening in jobs market."

"Risk to economy includes slowing global growth."

"US GDP likely 2%-2.5% for this year."

"Unemployment rate likely around 4.25% by year-end."

"Longer run expects unemployment to settle around 3.75%."

"Expecting more inflation cooling, inflation at 2.25% this year, near 2% next year."

"Confidence rising that inflation pressures are ebbing."

"Inflation expectations remain well anchored."

"Unemployment rate still low despite rise."

"Cooling in job market retreat from overheated conditions."