Fed's Williams: Repeat Rates Will Likely Rise This Year

        By Michael S. Derby

        Federal Reserve Bank of San Francisco President John Williams reiterated Wednesday that continued growth in the U.S. economy will allow the central bank to boost short-term rates this year.

        "I still believe this will be the year for liftoff, and I still believe that waiting too long to raise rates poses its own risks," Mr. Williams said.

        "I can't tell you the date of liftoff," Mr. Williams said in reference to when Fed officials might boost rates off of their current near-zero levels. That said, "I see growth on a solid trajectory, full employment just in front of us, wages on the rise, and inflation gradually moving back up to meet our goal" of a 2% rise, he said.

        Mr. Williams is a voting member of the monetary policy setting Federal Open Market Committee. The bulk of his remarks, which came from the text of a speech to be delivered before a local group in Mesa, Arizona, mirror very closely comments he made last week in Los Angeles.

        Mr. Williams' speech also came on the same day as Fed Chairwoman Janet Yellen's appeared on Capitol Hill to deliver the central bank's semi-annual report on the economy and monetary policy. Ms. Yellen told legislators Fed officials continue to expect to raise rates at some point this year if the economy performs as they expect. Mr. Williams, a close ally of Ms. Yellen, has been saying for some time he also expects to raise rates this year too.

        While few have committed to a time to boost them, some officials have pointed to the Fed's September meeting as a potential time to act. A small number believe very low inflation gives the Fed room to wait until next year, while in a speech earlier Wednesday, Cleveland Fed chief Loretta Mester said the economy could easily deal with a rate rise right now.

        In his remarks Wednesday, Mr. Williams continued to hold an upbeat outlook for the U.S. and added that he doesn't expect trouble in China and Greece to derail the U.S. expansion.

        Write to Michael S. Derby at michael.derby@wsj.com

        (END) Dow Jones Newswires

        July 15, 2015 15:10 ET (19:10 GMT)