U.S. Federal Reserve Bank of Minneapolis President Neel Kashkari said on Monday more rate cuts likely lie ahead for the central bank as the 2% inflation target looms into sight.

"As of right now, it appears likely that further modest reductions in our policy rate will be appropriate in the coming quarters to achieve both sides of our mandate," Kashkari said in a speech delivered before a conference held by the Central Bank of the Argentine Republic. He added, "ultimately, the path ahead for policy will be driven by the actual economic, inflation and labor market data."

Kashkari said that the current stance of monetary policy, with the federal funds rate range between 4.75% and 5%, remains restrictive of growth, although by how much is unclear.

He said the Fed is "in the final stages of bringing inflation down to our 2% target," while noting recent strong job market data shows the labor sector remains strong and is not on the verge of a rapid slowdown.

Kashkari spoke as the Fed is weighing how much further it can lower its interest rate target amid moderating price pressures and a still-strong economy.