Fed's Williams: US Economy Looking Good but Global Outlook Dimmer

Federal Reserve Bank of San Francisco President John Williams said U.S. economic improvement will warrant interest-rate increases at some stage in 2015, while voicing caution over weakness in Japan and Europe.

“The global economic outlook has definitely worsened,” he said at an event hosted at the San Francisco Fed.

Williams, who is a voting member of the policy-setting Federal Open Market Committee this year, said that despite such headwinds, he remains optimistic the Fed will be able to raise rates for the first time since 2006, depending on the data.

“The good news here is the economy has improved a lot, we’re in a pretty good place, and the fact is we’re able to start adjusting policy — tightening policy — because of that strength,” he said.

“I think sometime around the middle of the year we’re going to be closer to a decision.”