SINGAPORE - The United States Federal Reserve is likely to raise interest rates "later this year" on the back of a gradually recovering economy, said a top official said on Thursday during a visit to Singapore.
Dr John Williams, the president and chief executive of the Federal Reserve Bank of San Francisco, was speaking at the Symposium on Asian Banking and Finance, which his organisation is co-hosting with the Monetary Authority of Singapore.
The event, taking place on Thursday and Friday at the Grand Hyatt Hotel, is being held outside San Francisco for the first time. It will examine measures to strengthen the supervision of financial institutions and markets and to build financial system resilience.
Dr Williams said both the unemployment rate and inflation are gradually moving towards the Federal Reserve's target levels, pointing to an interest rate hike later this year.
He also noted that the "new normal" of slower global growth means market around the world will have to get used to structurally lower interest rates, even in the longer term.