Fed’s Williams sees more rate hikes, not worried on yield curve

(Reuters) – Continued gradual rate increases are the “right forecast” for the Federal Reserve for the next couple years amid stronger U.S. and global economic growth, fiscal stimulus, a strong labor market, better wage growth and stable inflation, a U.S. central banker said on Friday.

San Francisco Fed President John Williams, who will take over the New York Fed in June, also said he is not very concerned about the flat yield curve that some investors worry is an early signal of a coming economic slowdown. The yield curve will likely steepen as the Fed trims its balance sheet and as the federal government issues more debt to fund fiscal stimulus, Williams said in Pebble Beach, Calif.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.