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S.F. Fed head John Williams predicts two rate increases this year

Old_JoeOld_Joe
in Off-Topic
"San Francisco Federal Reserve Bank President John Williams said Friday that in his view, the time to raise short-term interest rates is getting “closer and closer,” adding that if the Fed raises rates sooner rather than later, “we can do it gradually.”

Based on his forecast, he would envision two increases of one-quarter percentage point each in the federal funds rate this year, emphasizing that the Fed’s actual course will “depend on the data.”

"Williams said he sees the United States reaching full employment (which he considers a 5.2 percent jobless rate) by the end of this year, and inflation hitting the Fed’s 2 percent target by the end of next year."

Credits:
The San Francisco Chronicle: "S.F. Fed head John Williams predicts two rate increases this year"
By Kathleen Pender
June 19, 2015

Comments

  • TedTed
    edited June 2015
    @Old_Joe: Sorry, I can't help you with the one. Article requires subscription to SFC. Don't know what John Williams is smoking, being San Francisco I have an idea, but that's not going to happen. What's happened is Yellen and the majority of the FRB members have decided to move up the start of rate increase eariler than I expected, July 2016, but with smaller incremental moves over the same one year period of time. So in effect, the net impact would be the same as July 2016
  • heezsafe
    edited June 2015
    The Confuse-a-Cat Shit Skit continues.... IMO, anyone who continues to listen to this clown show is at risk of developing Coulrophobia:

    http://www.smithsonianmag.com/arts-culture/the-history-and-psychology-of-clowns-being-scary-20394516/?no-ist
    "In Sarasota, Florida, in 2006, communal loathing for clowns took a criminal turn when dozens of fiberglass clown statues—part of a public art exhibition called "Clowning Around Town" and a nod to the city’s history as a winter haven for traveling circuses—were defaced, their limbs broken, heads lopped off, spray-painted; two were abducted and we can only guess at their sad fates."
  • JohnChisum
    edited June 2015
    @Ted, when you say smaller increments, do you mean smaller than .25? I have wondered all along why the Fed would not raise rates on a smaller scale than we are used to.

    They have been running new ideas for the past few years now so why stop. I think the fractional rate increases would be the way to go.

    Edit: I believe that smaller fractional rate increases would be a benefit to the markets as well.
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