Williams: Rate hikes should start in 2015 H2

|By:, SA News Editor

Speaking to Reuters, Williams says the pace of rate boosts should be "very slow," with the Fed Funds rate's first digit just being a "2" at the end of 2016.

His comments suggest something along the line of Greenspan's series of 25 basis point hikes to end the massive accommodation he put in place following the crash of the Internet bubble (that mellow rate hike cycle gave us the property bubble).

Yesterday, Atlanta's Dennis Lockhart too suggested beginning rate hikes in late 2015, but new house hawk Jim Bullard sees rate increases starting in less than a year and a Fed Funds rate of at least 4% by the end of 2016.

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