San Francisco Federal Reserve (Fed) President John Williams crossed the wires earlier on the day, via Reuters, speaking on the central bank’s monetary policy program.
Key Points:
Says his own view that 3 interest rate hikes is appropriate this year has not changed
US economy running somewhat hot
Still-soft inflation shows monetary policy on 'right path'
Sees relatively modest fiscal stimulus over next couple years
Says he is spending more time thinking through range of fiscal scenarios
Says jump in productivity growth that could deliver sustained 3-pct GDP growth not likely
Hard to see how changes to tax rates, regulations could change prospects for long-term economic growth
Federal Reserve to release details of balance sheet plan in coming months, start trimming later this year
Balance sheet trimming should be gradual, and on auto-pilot
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