New York Federal Reserve President John Williams said Monday interest rate cuts will likely start this year, but for the time being rates should stay steady so that inflation reaches target.

"With inflation continuing to gradually come down -- gradually is the operative word here -- and with the economy remaining strong, I do think that given where the level of rates are -- real interest rates are now considerably higher than where they were because inflation has come down quite a bit -- we will need to start a process to bring interest rates down to more normal levels," he said in an interview with Bloomberg TV. "My own view is that process will likely start this year." (See: MNI INTERVIEW: One Fed Cut Most Likely 2024 Outcome-Keister)