29 March, AtoZForex, Lagos – More and more optimism about the condition of the US economy is circulating, with two Federal Reserve members stating last week that another rate hike is likely to be announced in the US central bank’s next meeting. Today, the San Francisco Federal Reserve President John Williams is the latest policy maker to add an upbeat outlook to the US economic picture.
In a recent statement, John Williams clarified that the US economy remains on track for a gradual rate hike path and emphasized that panic over the impact of a slowing global economy and bouts of financial volatility are being exaggerated. The San Francisco Fed president dispelled the potential for international contagion, due to fears of an ailing global economy, stating that:
"Others' economic fates do not spell our own. My view is essentially, let's just stay on track. Let's not get sidelined by the noise and distraction commentary can sometimes cause."
Williams remains hawkish
Williams has been quite upbeat about the US economy and remains so, assessing that he expects the unemployment rate to fall to about 4.5 percent by late 2016. While US inflation is likely to return to the Fed's two-percent target over the next two years.
"We're not quite where I'd like us to be, but recent developments have been very encouraging and add to my confidence that we're on course to reach our (inflation) goal," he said, citing an uptick in oil prices and a stabilizing dollar.
Global economic conditions
Speaking of the larger global economy, he remain upbeat as well, opining that the situation for global economic growth isn’t dire. Pointing out that the International Monetary fund (IMF) has forecast about 3.5 percent global GDP growth this year, down only one-half percentage point from a year ago. Williams says he does not see a looming global crisis, also adding that China is likely to avoid a hard landing.
Although not a voting member of the Fed's rate-setting committee this year, only participating in deliberations, he remains clearly positive about the US economic stance at the moment
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