SINGAPORE May 29 San Francisco Federal Reserve
President John Williams said on Monday that medium-term trends
in inflation remain "pretty favourable," despite some recent
soft U.S. consumer price data.
The U.S. economy continues to grow close to 2 percent, the
unemployment rate is very low and job growth has been good,
Williams said, adding that these conditions are likely to help
inflation move up to 2 percent.
"We did see some soft data on inflation in the U.S. in the
last couple of months. That seems mostly due to some special
factors," Williams told reporters in Singapore on the sidelines
of an event.
"We think it's always important to...look at medium-term
trends and I still think those are pretty favourable," he said.
The Fed raised its benchmark rate in March for only the
third time since the 2008-9 global financial crisis, and Fed
Chair Janet Yellen has said the current range of 0.75 percent to
1 percent is still delivering an accommodative boost to the
With U.S. unemployment at 4.4 percent and job creation
nearly twice what is needed to provide jobs for new entrants to
the workforce, the economy is running "somewhat hot," he told
Reuters last week.
(Reporting by Masayuki Kitano and Miyoung Kim; Editing by Shri