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San Francisco Fed President John Williams gave an interview to Reuters ahead of the critical June meeting, providing the key highlights found below.

  • Fed should continue with gradual rate increases over next two years.
  • Expects U.S. rates to be about neutral after three more rate hikes.
  • Sees need for less forward guidance from fed as rates near neutral.
  • Notion of ‘accommodative’ policy less relevant as rates rise.
  • Fed does ‘not necessarily’ need to pause on rate hikes once rates reach neutral.
  • If economy stays strong, rates could go above neutral for a period of time.