Fed’s Williams: 50 bps interest rate hikes at next two meetings “makes sense”

ELTVILLE AM RHEIN, Germany – The Federal Reserve’s signal that it will likely raise interest rates by 50 bps at each of its next two meetings in June and July is sensible, New York Fed President John Williams said on Tuesday.

“I do think as a base case of thinking, 50 basis point increases makes sense exactly as Chair Powell laid out,” Williams told reporters following a speech to an economics conference organized by Germany’s central bank in Eltville am Rhein, Germany.

“We are removing accommodation pretty quickly…and that gives us a little space to move in something like the 50 basis point increment at the next couple of meetings.”

(Reporting by Francesco Canepa; writing by Lindsay Dunsmuir; Editing by)