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

NEW YORK, Jan 14 (Reuters) – New York Federal Reserve Chairman 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 take steps to reduce its bond holdings after it raises interest rates from near zero levels, and assured that Fed officials have the necessary tools to manage the balance sheet smoothly.

(Report by Jonnelle Marte, Edited in Spanish by Manuel Farías)