Federal Reserve of San Francisco President John Williams said he forecasts that inflation will hit Fed’s 2% inflation target within two years and predicts that US GDP will be at 2.25% and unemployment falling to 4.5% in 2016. He said policy normalization is a gradual process and being data dependant means having a strategy. Concluding his speech about ‘Rules of Engagement’ in New York he said: “The Fed uses a number of approaches to help us think about the economy and monetary policy—they’re all insightful, they’re all useful, and they’re all a part of the debate. But none is absolutely fail-safe. They will continue to be part of the discussion, but the idea that we should follow only one—never deviating from the path—is ill-advised.” For more information, read our latest forex news.