In an an interview on CNBC, SF Fed Williams commented:

  • GDP showed strong consumer spending
  • He sees strength in economy with a lot of momentum
  • Sees GDP at 3% in 2015
  • 5% employment by the end of the year. Expects employment will move to full employment by the end of the year
  • He sees inflation and wage growth moving higher.
  • We are currently not in a tight labor market yet.
  • Sees 3-3.5% wage growth in a strong economy. Not there yet.
  • Inflation can run low for a few months due to lower oil prices
  • Expects 2% inflation by end of 2016.
  • His views are that could see a rate liftoff by mid year
  • Cites that the US is getting close to full employment and that we are starting from point of extreme accommodation
  • Data dependent on how high rates can go.
  • Added “international” is a recognition of the world we live in and effects the monetary policy.It is an input for policy.