Fed can boost interest rates by 4-fold this year

Baku. 1 June. REPORT.AZ/ If positive trend continues in the US economy, discount rate can be increased by 3-fold this year. 

Report informs citing the Bloomberg, President of the Federal Reserve Bank of San Francisco John Williams said at a press conference in Seoul.

J. Williams said the US economy accelerated due to a decline in the level of unemployment below 4.5% and according to him the process will continue. He also noted that Fed may gradually cut monetary expansion.

"Increase in discount rate up to 3-fold this year is a base scenario. If economy grows 4-fold, the increase (including growth in March) may be supported", J. Williams stressed. The Fed's next step would be reduction of the balance and probably the process could begin this year. In order to achieve a normal level of balance a few years of time will be needed. To the question of in what level interest rates may be in the coming years, J. Williams answered: "As a result, we are moving step by step towards the goal of 3%".

J. Williams added: "I do not expect any change in fiscal policy in 2017. Any changes are possible in 2018-2019".