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