US inflation to reach target within 2 years – FOMC’s Williams

San Francisco Fed John Williams looked optimist today, arguing that US inflation figures could reach the 2% target ‘next year or two’, although he noted inflation expectations may be easing somewhat.

Williams also sees the US economy facing headwinds from overseas, while reiterated the ‘data dependent’ stance of the Fed. He thinks 2-3 rate hikes this year and 3-4 hikes next year are ‘about right’.