The New York Fed president said his personal forecast is for inflation to fall in the second half of this year and decline further next year. Last week, the Federal Open Market Committee kept the federal funds target rate range unchanged at between 3.50% and 3.75%. The New York Fed president said uncertainty remains high around the economic outlook, particularly regarding energy prices amid renewed Middle East conflict. Williams said the Fed will not set monetary policy based on market levels, though the central bank closely monitors financial markets. Futures traders have priced in a chance the Fed will raise rates by year end.