San Francisco Fed President William speaking. Headlines from his prepared text via Reuters:

  • Starting to see signs of imbalances in US economy; raising interest rates 'next appropriate step'
  • Sees Fed starting gradual rate hikes sometime later this year
  • Once imbalances are large, fed's options are limited
  • Rapid rise in house prices doesn't mean at tipping point yet, but looking for potential 'potholes'
  • Arguments for and against rate hikes in closer balance as economy nears full employment
  • Sees US GDP growing at 2.5 2.25% (correction issued) pct pace in 2015 2nd half, 'a little above' 2 pct in 2016
  • Expect unemployment to drop below 5 pct later this year, stay there through 2016
  • Estimates 'natural' rate of unemployment at 5 pct
  • Need at most 100,000 new jobs each month for stable growth
  • Inflation to rise to 2 pct over next two years as effects of strong dollar, cheap oil dissipate

Like Dudley and Evans before him today, Williams banging the '2015 rate hike' drum.

The full text of his speech is here: The Economic Outlook: Live Long and Prosper

Yep, he's in San Francisco all right.


Here's something ... a preamble to his speech:

  • So today I'd like to discuss the outlook, monetary policy, and where I see us headed. Before I get going, I should stress that the views expressed here today are mine alone and do not necessarily reflect those of others in the Federal Reserve System.

That's something to note about Federal Reserve speeches - the Presidents of the regional feds are free to speak (subject to restrictions ahead of FOMC meetings) but are to limit their speeches/comment to their own views, and not to discuss the views of others at the Fed.


There will be a media appearance following this too.