Name: John C. Williams

Summary: Rules of Engagement: "My own view is that it was time. The economy has been showing solid momentum, the recovery was well into its seventh year, and I’m someone who takes forecasts into account. I expect to see U.S. GDP growth of about 2¼ percent for 2016, unemployment edging down further below my estimate of the natural rate, to about 4½ percent by late in the year, and inflation—despite the stubbornness it’s shown—to move back up to our 2 percent goal within the next two years. All of which argue for getting on the normalization track. I also expect this to be a gradual process. This reflects the fact that the economy still needs a gentle shove forward from monetary policy, as we continue to navigate some headwinds—like weakness abroad—and their effects, particularly on the dollar and commodity prices. It also reflects my wish to take things slowly, to be able to adjust to circumstances and data as they come in. These projections take into account the headwinds, low growth, and low r* that come out of our models and are incorporated into the optimal control paths."

Lean: Hawkish

Substantially Similar to Prior Statements: No

Statement Date: February 25, 2016

Publication Date: February 25, 2016

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