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Fed's Williams: Fed funds at two percent or higher by late 2016 - CNBC
May 30, 2014 / 6:02 PM / 3 years ago

Fed's Williams: Fed funds at two percent or higher by late 2016 - CNBC

John Williams, president and chief executive of the Federal Reserve Bank of San Francisco, takes part in a panel discussion titled "U.S. Overview: Is the Recovery Sustainable" at the Milken Institute Global Conference in Beverly Hills, California May 1, 2012.Danny Moloshok

(Reuters) - San Francisco Federal Reserve President John Williams on Friday said the U.S. central bank's key policy interest rate could be as high as 2.5 percent by the end of 2016 and he expects the Fed to start raising rates next year.

In an interview on CNBC, Williams also said he expects U.S. economic growth to see a "pretty good snap back" in the second quarter and through the rest of 2014 after the first quarter's contraction, although U.S. trend growth is likely to continue to be subdued.

On U.S. unemployment, Williams said he expects the jobless rate, now at 6.3 percent, to fall through the year, ending 2014 at around 6 percent and falling to about 5.5 percent by the end of 2015.

Reporting By Dan Burns; Editing by Chizu Nomiyama

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