US growth outlook intact despite financial market volatility, Fed´s Williams says
Williams: Volatility in financial markets not linked to marginal rise in US interest rates
Williams: Global growth prospects intact according to IMF projections
Williams: Things in US labour market looking very good
Updated : 12:49
A top US central bank official sounded an upbeat note on prospects for that country´s economy, dismissing warnings that a slowdown in the world economy would derail the expansion.
The outlook for global growth had not changed over the last couple of months, despite recent volatility in financial markets, the US labour market was looking "very good" and inflation was on track to hit the Fed´s 2.0% medium-term target, the President of the Federal Reserve bank of San Francisco, John Williams, said in prepared remarks for a speech in Singapore.
To take note of, Williams emphasised he would always view developments globally through the lens of Fed´s mandate from his country´s lawmakers, achieving 'maximum employment' and 'price stability' in the US.
"The turmoil we’re seeing right now is a response to events —concerns about China are about China and concerns about Europe are about Europe. They’re not about marginally higher interest rates in the U.S.," Williams remarked.
"All in all, my outlook is positive. I see continued growth in the US, and I don’t see the global situation as dire. The ability of governments and central banks to respond to their own needs while navigating global conditions may not be a miracle cure, but it offers stability," he added.
Williams pointed to the International Monetary Fund´s projection for world GDP growth of 3.5% in 2016 to back up his case that global growth was still on track.
As regards the US labour market, Williams said that "we have either reached or are close to maximum employment across a broad range of markers."
The labour force participation rate was close to its long-term trend and progress had also been made in lowering the proportion of workers in part-time employment due to economic reasons, he said.
On meeting the Fed´s inflation target, Williams said: "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 goal."