Fed's Williams says need to raise rates before economy overshoots

[SAN FRANCISCO] San Francisco Federal Reserve Bank President John Williams on Friday repeated his view that the US central bank needs to reduce monetary stimulus before the economy overshoots the Fed's employment and inflation goals and the Fed has to "slam on the brakes".

An aging workforce and low productivity growth will keep the United States from growing faster than about 2 per cent annually on a sustainable basis, Mr Williams said at the Bay Area Economic Institute's annual forecast conference.

Donald Trump, sworn in as the 45th US president, has promised his economic policies will boost growth to 4 per cent.

REUTERS