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The overall trajectory of US interest-rate increases over several years matters more than the exact number of rate hikes this year, San Francisco Federal Reserve President John Williams said.
"If we did fewer in 2016, we'd probably have to do more in 2017," Williams said. Over several years, he projected the Fed would raise rates to around 3.5%.
Williams repeated his view that the economy will probably need between three to five rate hikes this year to meet his forecast of about 2% to 2.25% economic growth and 4.5% unemployment by the end of the year.
He said that while he is not too concerned about asset prices being overly high, the rapid rise in commercial real estate prices does bear careful watching.
