From an audience Q&A following his speech:
- US needs to get its fiscal house in order in the long run
- Monetary policy needs to be driven by outlook
- Federal Reserve policy should be guided by the data
- Thinks weight has moved to economy can handle rate hike
via Bloomberg
Reuters with more:
- We have to be willing to raise rates and then reassess policy
- The economy can handle the start of the process of a rate increase
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Just on those Reuters elaborations ...
- We have to be willing to raise rates and then reassess policy
That's what the RBNZ had done .... they rapidly hiked rates and then shifted almost as rapidly back into a cutting cycle.
- The economy can handle the start of the process of a rate increase
'The start of the process ...' Sounds wishy-washy to me. Is the start where you make sure all your pencils are sharpened before beginning work for the day? If so, yeah, the economy can handle that.
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Oh ... believe me this unrelated ... but here is a great headline from Reuters that just followed Williams' comments: