More comments from San Francisco Fed President Williams:

  • I don’t agree inflation is around the corner
  • As we get closer to full employment we will need to watch for rise in inflation
  • Still believe first Fed rate rise will be appropriate in H2 2015
  • Fed’s balance sheet will eventually be ‘significantly smaller’ than today
  • Sees a chance the Fed would tolerate above-target inflation
  • Fed needs to ‘stop answering the question’ about exactly when it will raise rates

He says the Fed needs to stop answering the question about rate hikes… then he answers the question.

No surprise to hear dovish comments from Williams.