Williams: The Fed aims to keep the markets stable

The state economy is close, or the Fed targeted level of full employment and stable prices, said Fed San Francisco head John Williams. Williams also added that the central bank's goal is to ensure the peace of the financial markets, with a gradual return to the normal interest rate policy.
According to the financial expert, the volatility is the last wanted thing to feed.
Employment in the US is at full employment, and inflation is expected to reach 2% target by the Fed by the end of next year. In such an environment, the Fed will most likely continue with its policy of normalizing interest rates. If the reserve does not do that, it risks the US economy "overheating seriously," Williams added.
The Fed raised the interest rate in March for the third time since the end of the financial crisis. Investors expect to witness two more interest rises by the end of this year, one of which is likely next month.
According to Williams, it is normal for the Fed to resort to a reduction in its balance sheet.