The US Federal Reserve is likely to cut its interest rate target further as inflationary pressures continue to cool, New York Fed President William said on Monday. "Monetary policy remains in restrictive territory to support a sustainable return of inflation to its 2 per cent objective," Williams said in a speech at a meeting of the Queens Chamber of Commerce in New York. Looking ahead, "I expect a continued shift to more neutral policy setting will be appropriate over time," Williams said the policy path will depend on data. If there is one thing we have learned over the past five years, it is that the outlook remains highly uncertain. Williams did not give clear guidance on the timing of rate cuts and whether he believes the Fed will lower its rate target at this month's FOMC meeting.