Investing.com - San Francisco Federal Reserve Bank President John Williams said Monday in the U.S. he sees monetary policy in the U.S. beginning to normalize this year.
"All in all, things are looking up," Williams said in remarks prepared for a UCLA Anderson School of Management event, "and if they stay on track, I see this as the year we start the process of monetary policy normalization."
But Williams, a voter this year on the Federal Open Market Committee, also expressed concern about keeping rates too long going forward in the form of higher asset prices.
"I am starting to see signs of imbalances emerge in the form of high asset prices, especially in real estate, and that trips the alert system," he said.
Williams said the decision not raise in September was a close call for him.
"Given the progress we've made and continue to make on our goals, I view the next appropriate step as gradually raising interest rates, most likely starting sometime later this year," Williams said.
Of course, he added, "that view is not immutable and will respond to economic developments over time."