“In particular, I hope it will be appropriate to raise the target range at our next meeting in March,” he added.
After interest rate hikes kick in, the next step would be for the Fed to start reducing its holdings of Treasury and mortgage-backed securities, said Williams, who expects that process to start later this year.
He said he expects US real GDP to grow just under 3% this year and the unemployment rate to fall to around 3.5% by the end of 2022.
In addition, it projects personal consumption expenditure (PCE) price inflation to ease to around 3% and fall further next year as supply challenges improve.
