Fed’s Williams: Fed should continue with gradual rate increases over next two years

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.