Armonk, NY (Reuters) - The timing of a U.S. interest rate hike will depend on the Federal Reserve better understanding the state of the global economy and its influence on the United States, San Francisco Fed President John Williams said on Saturday.
"Getting some more clarity around what is really happening in the global economy, how is that affecting the U.S. economy, and also seeing continued progress in the U.S. economy -- these are all things I'm watching," he told reporters when asked about a possible rate rise in October.
He declined to specify whether he sees October or December as the appropriate time to go.
"I'm expecting with an economy that's kind of a high-pressure economy, we're going to see wages pick up quicker, we're going to see domestic inflation trends pick up faster, and as some of these disinflationary influences from abroad ebb, we'll see U.S. inflation move back to 2-percent over the next two years," he said.
"The uncertainties really are from abroad. I'm not worried about the volatility or the stock market, but worried about influences that primarily affect the inflation outlook."