Williams, John on 2017 September 22
My own view is that [low inflation] has not been that baffling.
"My own view is that it has been not that baffling," Mr. Williams said, referring to low inflation. He noted that prices in some sectors such as health care and cellular services have been hit by downward movements, and that prices typically reflecting developments in the economy have been rising. "With a strong economy, history teaches us that inflation tends to move up," he said. Assuming the U.S. remains on a path of rising inflation and modest economic growth -- Mr. Williams expects 2.5% gross domestic product growth this year and slightly less than 2% in 2018 -- the Fed should be able to raise interest rates gradually toward what he sees as the "normal" longer-term policy rate of about 2.5%. That could include another rate increase this year and around three in 2018, he said, which is in line with projections released Wednesday by the Fed. Williams, John
Swiss National Bank Monetary Policy Conference