Fed's Williams: Growing U.S. wealth-to-income ratio another reason to keep raising rates
|San Francisco Fed President John Williams responded to questions from the press following his speech at an economists' club in New York.
Key quotes (via Reuters)
- Fed's current 'floor' policy method works effectively with use of repo, excess reserves rates
- Key risk in trimming bond portfolio is removing economic stimulus too quickly
- I see 2-3 more rate hikes this year; upside risks more prominent
- Recent decline in U.S. C&I loans not worrisome; demand for credit has not slowed
- U.S. tax reform is very complex, another reason not to presume immediate fiscal stimulus
- Much of dollar rise due to strength of U.S. relative to other economies
- Growing U.S. wealth-to-income ratio another reason to keep raising rates
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