Wil­liams Sees 2.5% Fed Funds Rate as ‘New Nor­mal’

The Bond Buyer - - Market News - — Gary E. Siegel

The fed­eral funds rate tar­get should con­tinue ris­ing grad­u­ally un­til reach­ing its “new nor­mal of 2.5%,” Fed­eral Re­serve Bank of San Fran­cisco Pres­i­dent John Wil­liams said Wed­nes­day.

“To be spe­cific, based on my out­look for em­ploy­ment and in­fla­tion, I view a grad­ual pace of in­creases over the next two years, bring­ing the fed­eral funds rate to its new nor­mal of 2.5%, to be ap­pro­pri­ate,” Wil­liams told Salt Lake Area com­mu­nity lead­ers, ac­cord­ing to text re­leased by the Fed.

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