HARTFORD, Connecticut (Reuters) - Federal Reserve Bank of New York President John Williams said Wednesday that future monetary policy actions will be driven by economic data as the central bank confronts a high level of uncertainty in large part driven by potential government policy changes.

"Monetary policy is well positioned to keep the risks to our goals in balance" and "the path for monetary policy will depend on the data," Williams said in the text of a speech prepared for delivery before the CBIA Economic Summit and Outlook 2025 in Hartford, Connecticut.

Williams, who also serves as vice-chairman of the interest-rate setting Federal Open Market Committee, pointed to the government as a key source of what limits him in providing guidance about the outlook for monetary policy.

"The economic outlook remains highly uncertain, especially around potential fiscal, trade, immigration, and regulatory policies," Williams said, "therefore, our decisions on future monetary policy actions will continue to be based on the totality of the data, the evolution of the economic outlook, and the risks to achieving our dual mandate goals."

At the Fed's most recent policy meeting held last month central bankers lowered their federal funds target rate range by a quarter percentage point to between 4.25% and 4.5%. As part of updated forecasts they also trimmed estimates of rate cuts for the current year and pushed up forecasts of inflation in the wake of recent data that had been showing sticky price pressures.

The return of Donald Trump as president has cast a cloud over the outlook, with the president-elect having campaigned on trade and immigration policies economists generally believe will push inflation higher and complicate the Fed's work of getting inflation back down to 2%.

In his remarks, Williams said the economy was in good shape and had returned to balance after the disturbances of the pandemic years. He said the process of disinflation is likely to continue but added it could take a while, noting he sees a return to the 2% target "in the coming years."

Williams also said that he expects growth in the nation's gross domestic product to moderate to 2% as the unemployment rate holds around 4% to 4.25%.

Williams also said the Fed's balance sheet drawdown has been proceeding smoothly.