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Fed's Williams expects above trend US growth rest of the year

[SINGAPORE] San Francisco Fed President John Williams said on Thursday he expects above-trend economic growth in the United States for the rest of the year after a weak first quarter.

Mr Williams told reporters in Singapore that the weak economic growth in the first quarter was an "anomaly" affected by factors such as the weather.

The US economy should grow about 2 per cent and unemployment should drift down below 5 per cent this year, Mr Williams said, but cautioned that more economic data needs to be collected before a decision on interst rates is made.

Mr Williams is a voter this year on the Fed's policy panel and his views are seen as closely aligned with Chair Janet Yellen.

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He was speaking to reporters on the sidelines of a symposium on Asian banking and finance co-hosted by the Monetary Authority of Singapore and the Federal Reserve Bank of San Francisco.

He said earlier in the day that the central bank is likely to start raising interest rates later this year, and will move them to more normal levels over the next few years.