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

Eren Sengezer FXStreet

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.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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