SF Fed chief: No rate hike until late 2015
San Francisco Federal Reserve President John Williams says Federal Reserve officials are in no rush to raise interest rates this year.
Most economists expect the central bank to raise rates sometime this year, and Fed Chairwoman Janet Yellen has said that an increase is unlikely before March.
Williams said that a rate increase might come in the second half of the year.
“I see no reason whatsoever to rush to tightening. I don’t see any upside risks to inflation,” Williams told reporters earlier Monday, according to The Wall Street Journal. “I think these financial stability concerns that people do raise are real things we want to take into account, but that doesn’t argue for moving today or in the next few months relative to, say, later in the year.”
The central bank scaled back its stimulus policies, known as quantitative easing, last year. Central bankers have kept the interest rate at zero since the 2008 economic collapse.
Despite the improving economy, some economists are concerned that it’s still too soon to raise rates and that if officials act too fast it could lead to inflation.
President Obama is expected to give a series of speeches this week touting the economic growth in a lead-up to his State of the Union address on Jan. 20.