NEW YORK (Reuters) - Federal Reserve Bank of New York President John Williams said Tuesday the current level of short-term interest rates should help get inflation back to the central bank's 2% target, in comments that offered no guidance about the prospect for more rate cuts.

"Monetary policy is well positioned to achieve maximum employment and price stability," Williams said in the text of remarks to be delivered before a gathering at Pace University in New York City.

"The modestly restrictive stance of policy should support the return to 2 percent inflation while sustaining solid economic growth and labor market conditions," he said, adding "it's important to note that the economic outlook remains highly uncertain, particularly around potential fiscal, trade, immigration, and regulatory policies," the official said.

Williams spoke after Fed Chairman Jerome Powell completed the first of two days of testimony before Congress about the state of the economy and monetary policy. The Fed cut rates by a full percentage point last year as inflation pressures waned, but still sticky price rises joined by the uncertain economic impact of policies being pursued by President Donald Trump have caused officials to pare back guidance about future prospects for rate cuts.

In his remarks, Williams was upbeat about the state of the economy and expressed confidence inflation pressures should wane further. He said he sees inflation at around 2.5% this year and that the 2% target would be achieved "in coming years." He said inflation expectations, which Fed officials view as influential to current price pressure levels, have been well anchored.

Williams said he expects the unemployment rate to hold between 4% and 4.25% this year and for the economy to grow around 2% this year and next.

"The labor market is in a good balance," Williams said, adding "importantly, the cooling from unsustainably tight conditions a few years back appears to have mostly run its course." He also said wage gains are consistent with productivity rates and a 2% inflation rate.