Fed’s Williams Calls for New Stimulus, S.F. Chronicle Reports
Federal Reserve Bank of San Francisco John Williams said the central bank should ease policy further amid signs the expansion is slowing, according to the San Francisco Chronicle.
Weakening employment, consumer spending and gross domestic product growth suggest the central bank should begin a third round of bond purchases, Williams said in an interview with the newspaper.
Williams, a voting member of the Federal Open Market Committee this year, joins other Fed presidents including Eric Rosengren of Boston and Charles Evans of Chicago in calling for more efforts to support the U.S. economy. The unemployment rate rose to 8.3 percent last month even as the economy added more jobs, Labor Department figures showed on Aug. 3.
The economy is likely to grow 1.8 percent in the second half of this year, and the unemployment rate will probably remain at 8.3 percent through this year, Williams said, according to the Chronicle. Europe’s debt crisis is also inhibiting U.S. growth, he said.
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