Fed rate hike makes sense, says US central banker
Now that the United States is closing in on full employment and inflation is likely to rise to target levels, the “next step” should be to start gradually increasing rates, a top US central banker said on Saturday.
“I do think it makes sense to gradually remove the policy of accommodation that helped get the economy to where we are,” San Francisco Federal Reserve Bank president John Williams said. The comments suggest that Williams is leaning toward support of a December rate hike, however he said that he expects “a lot of data” between now and then. “I am going to wait and see on that,” he said.
The Fed last month said it would consider a rate increase at its December 15-16 meeting, the last of the year. The announcement prompted FPIs to take out `4,300 crore from the capital markes last week.