Fed's Williams: More easing may be needed (by Greg Robb)
WASHINGTON (MarketWatch) - A forecast of only sluggish growth, stubborn unemployment and "undesirably low inflation" suggests that more easing steps may be needed, said John Williams, the president of the San Francisco Fed Bank on Tuesday. In a speech to the Greater Phoenix Chamber of Commerce, Williams said the economic story "is one of slow recovery from an especially severe financial crisis and recession, painfully gradual progress on unemployment and receding inflation." This is a story "that calls for continued action by the Fed," Williams said. Further easing could come in the form of additional asset purchases or further communication about the Fed's future policy intentions, Williams said. The Fed has said that it expects to keep rates close to zero until mid-2013 at the earliest.