SUN VALLEY, Idaho, June 30 The U.S. Federal
Reserve should aim to be less specific, not more, about when it
plans to raise interest rates, a top Fed official said on
Monday, reiterating his own view that rates should probably rise
sometime in the second half of 2015.
The Fed should "stop answering the question" about exactly
when it will raise rates, San Francisco Fed President John
Williams told reporters after a speech here.
He said he is a fan of the "dot" chart the Fed releases
showing the range of individual Fed official views on when rates
should rise, because it captures the uncertainty over the
Williams also said he believes the Fed's $4 trillion-plus
balance sheet will eventually shrink "significantly" and said he
would prefer the Fed eventually get rid of its mortage-backed
securities holdings. Whether it should do so through sales or by
letting them naturally run off is an open question, he said,
adding that the Fed still has years to make such a decision.
(Reporting by Ann Saphir; Editing by Chizu Nomiyama)