San Francisco Fed President Williams speaking on the economic outlook.

  • Says further gradual US interest rate hikes likely appropriate
  • We've reached fed's goal of full employment
  • Sees unemployment rate bottoming out at 4.5 pct in the next year
  • Sees US GDP growing 1.5 pct to 1.75 pct this year and next
  • Sees inflation reaching 2 pct in next couple of years
  • Says goal is to support trend GDP growth, not to overshoot too much
  • Sees risks to outlook roughly balanced

Headlines via Reuters

Reuters further noted:

  • Williams did not say in his prepared remarks how many rate hikes he would favor, nor did he address, as have several of his colleagues, the potential for fiscal policy under the incoming administration to speed growth, which could force the Fed to raise rates even faster.

Williams also noted that faster growth risks too-high inflation, asset-market bubbles and, eventually, a correction.

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Williams speaking to the Sacramento Business Review and the Sacramento Business Journal 2017 Economic Forecast Event.

From the marketing:

  • The Sacramento Business Review is the most comprehensive, precise, and intellectually sophisticated analysis of the regional economy and has accurately forecast the economic business climate for the last 9 years.
  • The panel of expert speakers will present data and highlight issues that affect our local economy.
  • Featuring keynote speaker John C. Williams, President and CEO, Federal Reserve Bank of San Francisco.

Remember the Federal Reserve 'data dependent' t-shirt?

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Market reaction to the comments is minimal. All eyes and ears are now on the tweeter (soon to be) in the White House.