Head of the San Francisco Federal Reserve John Williams
via Reuters:
- Says his own view that 3 interest rate hikes is appropriate this year has not changed
- US economy running somewhat hot
- Still-soft inflation shows monetary policy on 'right path'
- Sees relatively modest fiscal stimulus over next couple years
- Says he is spending more time thinking through range of fiscal scenarios
- Jays jump in productivity growth that could deliver sustained 3-pct GDP growth not likely
- Hard to see how changes to tax rates, regulations could change prospects for long-term economic growth
- Federal Reserve to release details of balance sheet plan in coming months, start trimming later this year
- Balance sheet trimming should be gradual, and on auto-pilot
Hand's up if you remember when Fed policy was data dependent!
more to come