Federal Reserve

Fed's Williams says December rate hike 'perfectly reasonable'

John Williams, president of the Federal Reserve Bank of San Francisco.
Stephen Lam | Reuters

San Francisco Federal Reserve President John Williams reiterated his view on Thursday that the U.S. economy is growing strongly enough for the Fed to continue raising rates gradually over the next couple of years to around 2.5 percent.

"My view is that a perfectly reasonable path for policy would be one more increase this year, and three next year," Williams told reporters on the sidelines of a conference on Asian economic policies at the regional.

The Fed currently targets short-term interest rates of between 1 percent and 1.25 percent.