John Williams: Fed can increase discount rate 4 times

Baku. 22 January. REPORT.AZ/ “There is some potential the economy is going to outperform my forecast”.

Report informs citing the Bloomberg, San Francisco Federal Reserve President John Williams said in an interview with USA Today.

Williams said significant risks to the economy have faded for the first time since the recession: “There is some potential the economy is going to outperform my forecast,” he said. “I’m not really worried about the economy stalling, which was a concern a few years ago”, he said.

"Probability of Fed’s increase in discount rate by 4 times exceeded the forecast about threefold increase", Williams added.

Notably, Fed’s next meeting will be held on January 30-31. Analysts do not expect the Fed to increase the rate at this meeting. Last time, Fed had increased rate on December 13-14 by 0.25% up to 1.25-1.50% corridor.