Fed should not wait too long to raise interest rates – Fed’s Williams

FXStreet (Mumbai) - San Francisco Fed chief John Williams said in remarks prepared for delivery to the CFA Society of Hawaii that the Federal Reserve policymakers should not wait too long to raise interest rates, because doing so could mean "drastically" overshooting on inflation and forcing the Fed to hike rates dramatically.

Key Quotes:

"I think that by mid-year it will be the time to have a serious discussion about starting to raise rates,"

"Overshooting our target would force us into a much more dramatic rate hike to reverse course, which could have a destabilizing effect on the markets and possibly damage the economic recovery,"

"I see a safer course in a gradual increase, and that calls for starting a bit earlier."