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.