Fed’s Williamson Says Central Bank Has Tools To Fight Inflation

A top Federal Reserve official said on Thursday that while the Fed does not expect its large balance sheet to ignite inflation, if its forecasts are wrong the U.S. central bank has the tools to keep inflation from rising out of control

San Francisco Fed President John Williams told a group of business leaders in Las Vegas that the Fed could raise rates more quickly if the economy starts to overheat, and also noted that the central bank has not ruled out selling assets if needed to keep inflation under control.

Williams also said that if the global economy slows “significantly,” that could prompt the Fed to delay raising rates beyond what is currently expected.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza