Economics
Fed’s Williams Says He’s For Hiking Rates Soon on Strong Economy
- San Francisco Fed chief warns of risks from waiting too long
- Uses language similar to speech before previous rate increase
Making Sense of the Fed Minutes
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Federal Reserve Bank of San Francisco President John Williams said the U.S. economy is strong enough to warrant an increase in interest rates soon, warning that waiting too long risks high inflation or asset bubbles that would cripple growth.
“In the context of a strong domestic economy with good momentum, it makes sense to get back to a pace of gradual rate increases, preferably sooner rather than later,” Williams said Thursday in the text of a speech in Anchorage, Alaska. “An earlier start to raising rates would allow a smoother, more gradual process of normalization.”