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Williams sets calming tone for those having 'sleepless nights' about Fed action

John Williams, the Federal Reserve Bank of San Francisco president, sought to calm those who have had "sleepless nights" about rapid action from the Fed, saying that the central bank will continue taking a measured, data-driven approach to rate hikes.

Williams, speaking at a Feb. 7 Hawaii event, reiterated the message he shared Feb. 2, when stocks started a two-day decline partly due to investor fears that the Fed might raise interest rates quicker than expected. The equities markets have since regained some of those losses.

Williams highlighted strong economic growth in the U.S., including the country's 4.1% unemployment rate and indications that inflation is returning to the Fed's 2% goal.

But Williams said he is "coming across a lot of anxiety about how the Fed's going to respond to such buoyancy," according to prepared remarks. He said again that the public should not fear a "knee-jerk reaction" from the Fed and that his central bank colleagues understand the consequences of unexpected moves.