Fed's Williams expects one more interest rate hike in 2017
Inflationary pressures are set to reaccelerate, which justifies continuing to remove policy accommodation, a top US rate-setter said overnight.
Speaking at an event in Sydney, Australia the head of the Federal Reserve bank of San Francisco, John Williams, reportedly said he expected another interest rate hike in 2017 alongside a start to unwinding the Fed's balance sheet in the next few months.
However, should inflation fail to accelerate as expected then that would argue for a much slower pace of interest rate increases than currently anticipated.