(Reuters) - Federal Reserve Bank of New York President John Williams said Monday that at some undefined point the U.S. central bank will lower its interest rate target.

"Eventually we'll have rate cuts" but for now monetary policy is in a "very good place," Williams said in comments made before the Milken Institute 2024 Global Conference in Beverly Hills, California.

The comments Monday followed last week's Federal Open Market Committee meeting. There, officials maintained their overnight target at between 5.25% and 5.5%, while signaling it's likely to stay there for some undefined period while they seek out additional evidence inflation is retreating back to target.

Williams did not offer a time table for action but he said the economy was overall moving back into better balance, amid a shift to a slower rate of growth. Williams said he expects the nation's Gross Domestic Product to rise at between 2% to 2.5% this year after expanding rapidly last year.

Williams also said the Fed's efforts to shrink the size of its balance sheet have gone well and haven't rattled markets.