With inflation still above the Fed's 2% target, the Fed made the correct choice by holding rates at a level that helps cool the economy, Williams said. "The current modestly restrictive stance of monetary policy is entirely appropriate given the solid labor market and inflation still somewhat above our 2 percent goal,

The US economy is facing high uncertainty amid evolving fiscal and trade policies, though the current monetary policy stance places the Federal Reserve well to adjust to changing conditions, New York Fed President John Williams said Friday.