Fed's Williams says U.S. growth set to perk up

WASHINGTON Fri Aug 23, 2013 11:07am EDT

John Williams, president and chief executive of the Federal Reserve Bank of San Francisco, takes part in a panel discussion titled ''U.S. Overview: Is the Recovery Sustainable'' at the Milken Institute Global Conference in Beverly Hills, California May 1, 2012. REUTERS/Danny Moloshok

John Williams, president and chief executive of the Federal Reserve Bank of San Francisco, takes part in a panel discussion titled ''U.S. Overview: Is the Recovery Sustainable'' at the Milken Institute Global Conference in Beverly Hills, California May 1, 2012.

Credit: Reuters/Danny Moloshok

WASHINGTON (Reuters) - A senior Federal Reserve official said on Friday that he expects U.S. economic growth to pick up significantly later this year and in 2014 as the drag from fiscal policy fades.

"I still expect there to be a significant step up later in the year and in 2014, especially as the fiscal restraint on growth steps back," San Francisco Federal Reserve Bank President John Williams told CNBC.

Williams also said the low level of inflation was a concern but that he was comforted that inflation appears to be moving a bit higher, which supported the view that there were temporary factors holding it down earlier this year.

(Reporting by Timothy Ahmann; Editing by Nick Zieminski)

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