Fed’s Williams: View that 3 interest rate hikes is appropriate this year has not changed

San Francisco Federal Reserve (Fed) President John Williams crossed the wires earlier on the day, via Reuters, speaking on the central bank’s monetary policy program.

Key Points:

Says his own view that 3 interest rate hikes is appropriate this year has not changed

US economy running somewhat hot

Still-soft inflation shows monetary policy on 'right path'

Sees relatively modest fiscal stimulus over next couple years

Says he is spending more time thinking through range of fiscal scenarios

Says jump in productivity growth that could deliver sustained 3-pct GDP growth not likely

Hard to see how changes to tax rates, regulations could change prospects for long-term economic growth

Federal Reserve to release details of balance sheet plan in coming months, start trimming later this year

Balance sheet trimming should be gradual, and on auto-pilot