Another Federal Reserve official went on the record Wednesday saying that interest rates could go up faster than expected this year.
San Francisco Fed President John Williams said his central bank colleagues should not "rule out more than three increases total for this year." The Fed already approved one hike earlier this month, with forecasts anticipating two more before the year ends.
Williams' remarks were somewhat less hawkish than those from Boston's Eric Rosengren earlier in the day, but they carried the same basic theme: the recovery is in full bloom, and the Fed needs to keep a handle on growth.
"What a difference four years makes. We're now very close to reaching the Fed's dual mandate goals of maximum employment and price stability," Williams said, according to prepared remarks he was delivering to the Forecasters Club in New York. "In fact, if you do the math, we are about as close to these goals as we've ever been."
Williams is a non-voting member of the Federal Open Market Committee, but he does participate in deliberations that lead to policy.