The time is not yet right to taper the asset purchase program, according to Federal Reserve Bank of San Francisco President and CEO John C. Williams.

"Of course, the economy's increased momentum has raised questions about when the Fed will cut back, and eventually end, its asset purchase program. So, is it time to act? My answer is that it's still too early," he told the Sonoma County Economic Development Board, according to prepared text of his remarks, released by the Fed. "For one thing, we need to be sure that the economy can maintain its momentum in the face of ongoing fiscal contraction. And it is also prudent to wait a bit and make sure that inflation doesn't keep coming in below expectations, possibly signaling a more persistent decline in inflation."

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