Comments from San Francisco Fed President John Williams:
- Rate rises to be slow and gentle
- US economy has a good head of steam
- Expects inflation to reach or be near 2% by end-2017
- US economy still needs accommodative Fed policy
- An economy that runs too hot can generate imbalances
- Fed has 'a ways to go' before shrinking balance sheet
- Will take at least 6 years to normalize balance sheet
- Downside risks include dollar, spillovers from abroad
- Sees labor market 'that's growing ever stronger'
- Sees US unemployment rate around 4.5% by mid-year
- Upside risks to US include housing
- Doesn't see much pickup in labor force participation
- Williams is delivering the speech in California
It's optimistic and fitting with the bulk of the FOMC. I think good weather spilling into economic data will keep the Fed in a positive mood until about June.
Kinda looks like the ForexLive logo. Thanks to the SF Fed for the shirt.