Recent jobs data show "good momentum" for the rest of the year, San Francisco Fed President John Williams told CNBC on Monday.
Last week, the Labor Department announced that the U.S. economy had created 223,000 jobs in April and that the unemployment rate had touched a seven-year low of 5.4 percent, but wage growth only rose slightly from March.
Williams, a voting member of the Federal Open Market Committee, said on CNBC's "Squawk on the Street" he is seeing progress on the employment front but the "real question" is whether inflation is where the Fed wants it to be. He cited the strong dollar among other factors holding inflation below the 2 percent target.
The San Francisco Fed president said his personal one-year forecast indicates that the U.S. economy will see unemployment below 5 percent, underemployment at "more normal levels," inflation heading back to 2 percent, and "rates will be moving up."