St. Louis Federal Reserve President Alberto Musalem said on Wednesday he expects the U.S. central bank will be able to continue to cut interest rates but isn't ready to say what he thinks should happen at its policy meeting later this month.

The Federal Open Market Committee is most likely to cut interest rates again to 4.25% to 4.5% on December 18 according to fixed income markets.

At the Queens Chamber of Commerce, Williams explained that the Fed is reducing rates because “while growth in demand has been strong, growth in supply has been even stronger.” They have thought that by allowing more economic activity with lower rates, the overall economy could come back into balance.