ISTANBUL

New York Federal Reserve President John Williams stressed on Wednesday that the Fed’s independence is important as President Donald Trump moved to fire Governor Lisa Cook.

“Personally, I have worked with Lisa Cook as she’s been a member of the Board of Governors, and she’s always brought integrity and commitment to the central bank’s mission," Williams said in an interview with the CNBC business network.

“I think Federal Reserve central bank independence is very important. ... We know from history that independent central banks can deliver low inflation, economic and financial stability," he noted.

Trump has repeatedly criticized Fed Chair Jerome Powell as the central bank decided to keep the policy rate unchanged in the previous meetings. The US president has even considered firing Powell, but later turned his attention to sacking Cook for alleged mortgage fraud.

Cook said Tuesday she would not leave her post at the Fed.

“The structure of the Federal Reserve is such that it’s designed to have independent policy makers who are making decisions; longer decisions affect the economy over the longer term, away from short-term political pressure,” said Williams. “I think that’s really, really important.”

He also touched on the short-term monetary policy path, saying it is likely that the central bank will reduce rates, but did not provide a timeline for the decision.

As inflation dipped below expectations in July and employment slowed, markets expect a 25 basis-point rate cut in the September meeting. The policy rate currently stands between 4.25% and 4.5%.

“If things move in the way that I hope they do in terms of our maximum employment and price stability goals, then I do think it will be appropriate to move interest rates down over time,” said Williams.

Last week, at the Jackson Hole symposium, Powell signaled a possible rate cut.

"With policy in restrictive territory, the baseline outlook and shifting balance of risks may warrant adjusting our policy stance," he said.