Fed’s John Williams calls for policy to work towards a ‘Goldilocks economy’
Singapore — Federal Reserve Bank of San Francisco president John Williams said three interest-rate increases in 2017 makes sense as the central bank takes gradual steps to tighten monetary policy and shrink the central bank’s balance sheet to prevent the economy from overheating. "The US economy is about as close to the Fed’s dual mandate goals as we’ve ever been," Williams said in Singapore on Monday. "It’s more important than ever for monetary policy to work towards what I like to call a ‘Goldilocks economy’ -— an economy that doesn’t run too hot or too cold." Williams does is not voting on monetary policy in 2017, but he worked closely with Fed chair Janet Yellen when she led the San Francisco Fed and he was its director of research, and is seen as an influential voice at the central bank. Williams said a total of three rate increases in 2017, including the one in March, was sensible, with inflation set to approach the 2% target within a year. Investors see a roughly 80% chance o...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.