US economy still needs a gentle shove forward, Fed´s Williams said

The US economy still needs a gentle shove forward from monetary policy, the president of the Federal Reserve bank of San Francisco said on Thursday.

In a speech delivered at NYU´s Stern School of Business, Williams said he expected "a gradual process of rate hikes".

"This reflects the fact that the economy still needs a gentle shove forward from monetary policy, as we continue to navigate some headwinds "like weakness abroad"and their effects, particularly on the dollar and commodity prices," he said.

Nonetheless, his forecast was for inflation to move back towards a 2% pace as activity rebounded.

Williams reportedly also pushed back against pressure from lawmakers to tie the central bank´s policy to a rule.

"I favor an eclectic approach, recognizing that policy is always made with a high degree of uncertainty and one shouldn't place all their bets on one approach."

"While I understand the impetus behind wanting a single rule to follow, it's just not ready for prime time," he said.