SAN FRANCISCO (Reuters) – U.S. inflation will likely still be “well below” the Federal Reserve’s 2-percent target next year, but that won’t stop the central bank from raising interest rates, a top policymaker said on Friday.
“I would say at this point that June 2015 seems like a reasonable starting point for thinking about when liftoff could happen,” San Francisco Federal Reserve Bank President John Williams, who will rotate next year into a voting spot on the Fed’s policy-setting committee, told Bloomberg Radio.
Fed communications blackout period has clearly lifted
SAN FRANCISCO/NEW YORK, Dec 17 (Reuters) – Federal Reserve
Chair Janet Yellen pulled off a tricky policy transition on
Wednesday, clearly telegraphing that interest-rate hikes are
approaching even while three of her colleagues at the U.S.
central bank objected to her new message.
The Fed has been slammed for sloppy communications in the
past, especially after then-Chairman Ben Bernanke accidentally
set off a global market rout last year.