It’s entirely sensible to raise interest rates, says New York Fed’s Williams

NEW YORK, Jan 14 (Reuters) – New York Federal Reserve President John Williams said on Friday it is “sensible” for the central bank to start raising interest rates this year while removing some of the support provided during the pandemic.

The Fed will focus on economic data when deciding the exact timing and pace of future increases in the cost of credit, he said, adding that it “makes sense” for the central bank to continue to phase out monetary expansion.

Williams said the Fed should move to reduce its bond holdings after it raises interest rates from near-zero levels, saying Fed policymakers have the tools to manage the balance sheet smoothly. (Reporting by Jonnelle Marte, Editing in Spanish by Manuel Farías)

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