|
"I think every one of our meetings should be in play in
principle ... I definitely think September should be," Williams
told reporters after a speech here, referring to the U.S.
central bank's next policy meeting. "I think that makes sense
given where the economy is."
Saying he is in no hurry to raise rates, Williams nevertheless
warned that the economy could overheat if rates are kept low for
too long, like a party at which the host fails to remove the
punch bowl.
Williams does not have a vote on Fed policy this year, but his
views are seen as influential on the policy-setting committee
because of his longstanding relationship with Fed Chair Janet
Yellen, his former boss at the San Francisco Fed, and his
research-driven style.
New York Fed President William Dudley and Atlanta Fed President
Dennis Lockhart have also in recent days made the case that the
U.S. economy is in good shape and that the Fed should soon
restart an expected run of gradual rate hikes that it began last
December but shelved amid financial market turmoil and fears of
the effects of a slowdown in China and Europe.
Their voices are especially notable against a backdrop of market
bets and some analyst commentary that the Fed will never raise
rates.
Williams himself fueled some of that speculation with an essay
published this week calling for a recalibration of the Fed's
long-term goals given a growing body of research suggesting U.S.
growth has permanently slowed.
Williams on Thursday told reporters that despite his call for a
longer-term rethink, monetary policy must for now be set based
on current goals, including full employment and a target of
2-percent inflation.
The Fed has met the first goal and is nearing the second, he
said.
He told reporters that uncertainty about exactly when the Fed
will raise rates was acceptable.
"What worries me a little bit more is that there is a view out
there (that) no matter what the Fed says they are not going to
raise rates for a year or two," Williams said. "That's
inconsistent with my understanding of the economy and also the
strategy that we’ve laid out."
(Reporting by Ann Saphir; Editing by Chizu Nomiyama and James
Dalgleish)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
