HALF MOON BAY, California The Federal Reserve, which eased monetary policy last year by launching a new asset-purchase program, has calibrated monetary policy appropriately, a top Federal Reserve official said on Monday.
"We are facing difficult situations -- I wish growth was faster, I wish unemployment would come down faster as well -- but I think we've got the policy position right," John Williams, president of the San Francisco Federal Reserve Bank, told reporters on the sidelines of a technology-focused conference here. "I think it's appropriate, right where it is."
Williams cited both the Fed's open-ended bond-buying program -- now at $85 billion a month -- and its decision last month to tie its low-rate policy to specific economic conditions.
He said he expects the U.S. unemployment rate to fall to 6.5 percent -- the threshold at which the Fed will revisit its low-rate policy, as long as the inflation outlook does not hit 2.5 percent before then -- in the second half of 2015.
(Reporting by Ann Saphir; Editing by Leslie Adler)