Mester said a weakening economy in China had already been built into the outlook for 2016 by Fed officials.
No ‘Significant’ Risk
“I don’t see that as a significant risk for the forecast,” she said.
Williams, who doesn’t vote on policy again until 2018, also downplayed market turmoil, saying he expected unemployment in the U.S. to fall below 5 percent and inflation to begin moving back toward the Fed’s 2 percent target this year.
“We are, relative to most other countries, in very good shape, partly because we took very aggressive monetary policy actions, and other actions, to get our economy back on track,” Williams said in an interview on CNBC.
Still, Williams added that because weak overseas growth would continue to hurt exports, the Fed would have to continue with “significant monetary accommodation” to keep growth above 2 percent.
Williams said he expects the Fed to raise rates three to five times in 2016, provided the economy stays on track. The median estimate of quarterly Fed projections released in December was for four quarter-point hikes this year.
Fed Chair Janet Yellen told a press conference following the Dec. 16 decision to raise rates that officials expect to move gradually as they contemplated additional hikes. The Fed is scheduled to release the minutes of its December meeting on Wednesday. The FOMC will convene again on Jan. 26-27 in Washington.