Feds Williams: Gradual policy normalization the best course

• Fed dealing with outside sources
• Economy still needs gentle shove from fed policy
• US economy. All in all looking pretty good
• Things are looking good on employment
• Sees increasing signs wage growth is picking up
• Forecast 2.25% GDP growth in 2016
• expects inflation moving to 2% over next 2 years
• Fed policy data dependent
• Fed dealing with outside forces
• Gradual path of rate increases preferred route
• Downward pressure on inflation from oil dollar should peter out.
• Fed is closely monitoring potential spillovers from China, Brazil, others