Fed Williams the U.S. economy is in good condition should gradually raise interest rates sunny came home

The Fed’s Williams: the U.S. economy is in good shape should be gradually Shengxi U.S. stock market center: exclusive national industry sector stocks, premarket after hours, ETF, real-time quotes Sina warrants stocks 7 Reuters news Beijing reported that the Federal Reserve Bank of San Francisco President Williams (John Williams) on Tuesday called again should gradually shengxi. Due to the recent slowdown in the pace of employment growth in the United States, and the sluggish performance of the service sector, the current traders have expected the U.S. Federal Reserve (the Federal Reserve) this year will not raise interest rates. "Back to the path gradually Shengxi is justified, and sooner rather than later," Williams said in a speech. In his speech did not mention the data released Tuesday showed that U.S. August service sector activity index hit six and a half years minimum, nor about payrolls report released last Friday showed the government of August the number of new jobs than expected. Williams pointed out that the economy is in good shape, and the unemployment rate is expected in the next year will be reduced to 4.5%, the inflation rate in the next one or two years or so to reach the Fed’s target level of 2%. But in the long term, Williams made it clear that he is far from satisfied with the Fed’s current monetary policy approach. He believes that, as the Federal Reserve and many other central banks do, with low inflation as a policy goal, in today’s world may not be effective because of the economic growth and interest rates will continue to decline or lower than before (Great Recession). He said that the setting of low inflation targets, so that the Federal Reserve to guard against future shocks when the buffer is too small. Williams believes that the Fed’s inflation target of 2% can be increased to 3% or even 4%, or completely abandon the inflation rate as the goal, to the national economic output (national economic output) the nominal level as the target. He believes that it takes time to determine which approach is most effective in the face of the economic downturn in the future, so it is necessary for the Federal Reserve to act quickly. "We don’t have much time," said Williams. Williams first proposed the idea of changing the Fed’s monetary policy last month, when he began to actively promote interest rates. Williams, chairman of the Federal Reserve, said last month that the Fed is not actively considering the proposed strategy change in the issue of Mr. Yellen. It is not clear how much support he has received. (end) (compile Xu Wenyan Zheng Yin revisers Gong Fang Dai Suping) (Reuters Chinese network) editor: Zhang Yujie SF107相关的主题文章: