(Reuters) - Federal Reserve Bank of New York President John Williams said Thursday he expects more rate cuts lie ahead as inflation pressures continue to moderate.

"Based on my current forecast for the economy, I expect that it will be appropriate to continue the process of moving the stance of monetary policy to a more neutral setting over time," Williams said in the text of a speech prepared for delivery before an appearance at Binghamton University, in Binghamton, New York.

As for what the Fed does, "the timing and pace of future adjustments to interest rates will be based on the evolution of the data, the economic outlook, and the risks to achieving our goals," the official said.

Williams spoke after the release of consumer level inflation data earlier in the day that again helped affirm that the inflation pressures that had driven the central bank to pursue the highest level of short-term rates in years continue to abate. Last month the Fed cut its overnight interest rate target by half a percentage point to between 4.75% and 5% and penciled in more rate cuts. Markets are currently looking to data to see how much further the central bank can trim rates as the year moves forward.

In his remarks, Williams flagged an economy on a strong footing, describing growth as solid amid a much better balanced job market.

Williams said he expects the economy to grow by 2.25% to 2.5% this year and to average 2.25% growth over the following two years, with unemployment edging up to 4.25% by the end of this year and holding there in 2025. The official said he sees inflation moving down to 2.25% this year and moving "close" to the Fed's 2% goal next year.

Williams noted "there's still some distance to go to reach our goal of 2 percent, but we're definitely moving in the right direction."