San Francisco Federal Reserve Bank President John Williams said he will continue to take a "wait-and-see" approach to a rate hike, since it is data-dependent, and he need to be more confident inflation will rise to the 2% Fed target.
"That doesn't mean I'm changing my forecast; it means economic forecasting and the data-based assessments required to make impactful policy decisions are two different things," Williams told the Mesa Chamber of Commerce, according to prepared text released by the Fed. "I'll be looking at the evidence, and, as I've said almost as much as I've uttered the phrase 'data dependent,' every FOMC meeting is on the table."
Williams reiterated his belief rates will go up this year, as waiting too long is risky. "I know not everyone agrees and there are those who believe we should wait until we're nipping at the heels of 2 percent," he said, but given the lag in monetary policy, it makes sense to act before reaching the 2% target.
Also, he noted, a rate hike would still leave monetary policy highly accommodative.
