Fed's Williams sees first rate rise in summer or fall

SAN FRANCISCO: The Federal Reserve will probably start raising rates "sometime this summer, or this fall" if the economic data come in as expected, a top Fed official said on Thursday.

San Francisco Fed President John Williams, in an interview on Fox Business Network, said he expects the United States to reach full employment by the end of this year and inflation to reach 2 percent by the end of next year.

The Fed will need to start raising rates before employment and inflation get back to normal, he said.

"If the data come out in the way I expect then I think that first step could be some time this summer or this fall," Williams said of a Fed rate rise.