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Fed’s Williams: Economy Still Needs Aggressive Central Bank Support

By Michael S. Derby

The Federal Reserve should continue to provide stimulus aggressively to the economy, a U.S. central bank official said Tuesday.

But in light of the recent improvement in the economy, the policy maker, John Williams of the Federal Reserve Bank of San Francisco, didn’t discuss the possibility the central bank will have to consider delivering even more stimulus, as he has in past remarks.

“It’s essential that we keep strong monetary stimulus in place,” Williams said in the text of a speech that was to be delivered before a gathering held at the University of San Diego School of Business Administration. “High unemployment, restrained demand and idle production capacity are national in scope. These are just the sorts of problems monetary policy can address.”

But unlike in past speeches, Williams, a voting member of the monetary-policy-setting Federal Open Market Committee, didn’t discuss the potential need for the Fed to go beyond what is already planned.

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