Fed's John Williams addresses inflation concerns and future rate hikes.

New York Federal Reserve President John Williams cautioned that interest rate increases will take a while to work their way through the economy before inflation returns to an acceptable level. He added that unemployment is likely to rise to a 4%-4.5% range, from its current 54-year low of 3.4%. Should inflation not come down, he said the Fed always has the option to raise rates. Williams said that decision is now a matter of what the incoming data says.