NEW YORK, Nov 6 (Reuters) - New York Federal Reserve President John Williams said Wednesday any changes in interest rates from here will depend on the incoming economic data but policymakers should be preemptive in taking steps to keep the expansion alive.
Williams also said the three interest rate cuts the Fed has delivered since July leave the U.S. economy better positioned to withstand potential risks.
"We want to keep this Goldilocks economy going, not too hot, not too cold," Williams said Wednesday at an event organized by the Wall Street Journal. "It's a combination of responding both to what we're seeing in the data but also looking ahead and seeing where is this economy likely to be next year and the year ahead."
Fed officials cut interest rates last week by a quarter percentage point to a target range of 1.50% to 1.75%. Policymakers characterized the third rate reduction of the year as the last of the "insurance cuts" meant to bolster the ability of the U.S. economy to withstand potential headwinds from a global slowdown, a manufacturing slump and a trade war with China.
Policymakers continue to point to the strong labor force as evidence that the U.S. economy is in a good place. Fed Chair Jerome Powell and others said it would take a "material change" to the economic outlook for them to support further rate cuts. (Reporting by Jonnelle Marte Editing by Chizu Nomiyama)