Fed's Williams: Something like three hikes this year makes sense

Author: Adam Button | Category: Central Banks

Williams spoke to Reuters

There was some Fedspeak on the weekend with San Francisco Fed President John Williams laying down his baseline for rate hike this year in comments to Reuters.

"We're in a pretty good situation: the economy is doing great, everyone expects us to raise rates gradually ... and if the data change we can respond to that," said Williams, who has a vote on policy this year under a rotation.

"I'm not worried about inflation suddenly taking off," he told Reuters over lunch during an American Economic Association conference in Philadelphia. "Something like three rate hikes makes sense to me" this year, he added.

That kind of scenario would be positive for the dollar; the market has priced in a 43% chance of three hikes or more this year.

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