Williams wary of acting before more signs of inflation rising

  • All signs point to 'huge progress' in labor market
  • In 'wait and see' mode on rates due to low inflation
  • Safer to start raising rates sooner and go gradually
  • Waiting too long to raise rates poses risks
  • Expects to reach full employment later in 2015
  • Still believes Fed will raise rates this year
  • Factors are in place for 2% inflation by the end of 2016
  • Expects growth to average 2.75% for next several quarters
  • SF Fed sees Q1 growth at 1.5%

Dovish. 'Still' seeing rate hikes this year doesn't exactly inspire confidence that they're coming.

The comment on growth suggests big revisions to the negative earlier readings.