Williams isn't doubting the models

San Francisco Fed President John Williams spoke to the New York Times about inflation.

Williams is a voter next year and has slowly become one of the stronger believers that inflation is coming.

"I view both inflation picking up faster than expected in early 2017 and now the pullback as just part of the variability that's going to happen. I don't see any signs that somehow the inflation process is fundamentally changed," he said.

Williams was dismissive of the arguments that something has changed that the models aren't picking up.

"I've been doing this a long time, and the Phillips curve has been declared dead far more times than Mark Twain," he said.

That's a serious lack of humility from an institution that's been wrong about just about everything for a decade.

On rates, he said he wants to get back to 2.5%.

"My own view is we want to continue this gradual pace of increase. One more rate increase in December and three more next year is a pretty good starting point," he said.

Read the interview here.