San Francisco Fed chief says forecasts for 3 or 4 hikes in 2017 make sense
A top US rate-setter said the median expectation from policymakers for a total of three to four interest rate hikes in 2017 would make sense if the economy continued progressing as expected.
"A view, like the median view of my colleagues, of say three or maybe even more increases this year, makes sense to me, but it would depend on the data," San Francisco Fed chief John Williams told the Wall Street Journal.
Continued progress in the economy would bring the Fed closer to the point of starting to normalise its balance sheet towards the end of the year, Williams also said.
However, the process of returning the monetary authority's balance sheet to "normal" would be gradual, taking years, he added.
Although Williams does not hold a vote on the Federal Open Market Committee this year, many market observers regularly highlight the fact that was the head of research at the San Francisco Fed under Yellen.
As of 1826 GMT the yield on the benchmark 10-year US Treasury note was up by one basis point to 2.42%.