Fed’s Williams expects to see rates rising gradually

Speaking in Singapore, San Francisco Fed president John Williams repeated that he sees rates rising gradually.

Key Quotes:

There’s a way to go before Fed shrinks balance sheet

Recent inflation developments are very encouraging

US is either at or close to max employment

US inflation on track to rise to 2% over next 2 years

Will take at least 6 years to get balance sheet back to normal

China growth downgrade doesn't signal a hard landing

Does not see a global crisis looming

US recovery powered by domestic demand, not necessarily impacted greatly by other countries