The Federal Reserve, advancing toward dual mandate of steady prices and maximum employment, should increase interest rates soon and slowly.
Federal Reserve Bank of San Francisco President John Williams said the economy remains on a good trajectory and the central bank needs to look through the front window in setting monetary policy on a sluggish economy.
Williams also expect inflation to stabilize and growth to remain on track, enabling policymakers to decide in the near future.
Upon seeking a series of tepid US economic data, traders have scaled back their bets the Fed will raise rates this year.
Last month, Fed officials voted to keep rates near zero despite growing risks to the outlook caused by China’s slowdown. But Fed Chairman Janet Yellen, Vice Chairman Stanley Fischer, and other officials are still expecting a rate hike this year.
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