FILE PHOTO: The U.S. Federal Reserve building in Washington, D.C. - Ahead of their policy-setting meeting this month, Federal Reserve policymakers have been pretty clear about two things: They are not itching to raise interest rates, but few among them are ready to declare victory, either.
And for now, even the Fed's more hawkish policymakers are content to let the data play out, even as they monitor whether surprisingly strong consumer spending and a still-tight labor market could feed inflationary pressures. And while fellow policymakers hold a range of views, none have pushed back strongly against broad financial market expectations the Fed will leave its policy rate in the current target range of 5.25%-5.5% at that meeting.
Williams, like others, said he's watching the data closely to guide policy. Chief among data to be released before the upcoming meeting is a read on the Labor Department's Consumer Price Index next Wednesday, which is expected to show inflation by this measure having ticked up to 3.6% last month due largely to higher gas prices.