Federal Reserve Bank of San Francisco President John Williams said economic growth in recent months has fallen short of his expectations, partially eroding his confidence gains in the labor market will endure without monetary stimulus.
“Up until recently, I was thinking we would start seeing more of that self-powered growth in the second half of this year,” Williams said to reporters today in San Francisco. He doesn’t vote on policy this year. “Unfortunately, that’s not really been happening,” and “we haven’t seen a real pickup.”
The Federal Open Market Committee last week decided to maintain $85 billion in monthly bond buying until seeing indications of sustained gains in the economy. Three Fed officials who vote on policy signaled yesterday that unprecedented accommodation will probably continue for some time to combat unemployment, which was 7.2 percent in September.