Federal Reserve Bank of San Francisco President John C. Williams said he expects the economy to grow at a “moderate” pace of 2.5 percent this year and “pick-up somewhat” during the next few years.

“It’s going to take a while to build up momentum,” with weakness in the housing market and reduced government spending inhibiting growth, Williams said today on a panel at a conference in Beverly Hills, California.

“We basically have this two-track economy,” with some areas like manufacturing showing signs of strength while others, such as construction, remain weak, said Williams, who votes on the policy-setting Federal Open Market Committee this year.