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: