SAN FRANCISCO (Reuters) - San Francisco Federal Reserve Bank President John Williams told Bloomberg Radio Friday that he is already seeing some signs of wage growth, a key metric for a central bank keen for some signs of an inflation pickup as it gets ready to raise interest rates next year.
Still, Williams said he fully expects core inflation - which does not include volatile oil or food prices - to be below 2 percent when the Fed begins raising rates. The Fed uses core inflation as a guidepost for where headline inflation will be a year or so in the future; its 2-percent target is for overall inflation.
Williams will rotate into a voting spot on the Fed’s policy-setting committee next year.
Reporting by Ann Saphir; Editing by Chizu Nomiyama