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Fed monetary policy is appropriate where it is, Williams says
January 14, 2013 / 7:01 PM / in 5 years

Fed monetary policy is appropriate where it is, Williams says

HALF MOON BAY, California (Reuters) - 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.

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

“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

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