San Francisco Fed says rate increases likely mid-2015

first_imgInterest rate increases won’t arrive until the middle of 2015, said Federal Reserve Bank of San Francisco President John Williams in a Bloomberg Radio interview on Friday, adding that the central bank can begin to normalize its monetary policy even if inflation is short of the Fed’s official target.Williams, who will have a voting role on the monetary-policy setting Federal Open Market Committee next year, said in his interview that the economy is in “a very good place right now” and that any moves the Fed takes to boost rates is unlikely to take place “in the next couple of meetings,” as quoted in The Wall Street Journal.The FOMC is planning to meet twice in the first quarter of 2015, with the third meeting scheduled for late April.Williams said that June might be a starting point for a rise in interest rates.Last week, the FOMC announced at the close of its two-day meeting that it will stay its current monetary policy course and added that it can be “patient” in deciding when to begin normalizing policy. In a press conference following the close of the meeting, Fed Chair Janet Yellen made clear that the committee “considers it unlikely to begin the normalization process for at least the next couple of meetings.” continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img