Federal Reserve Bank of San Francisco President John Williams said the pace at which the Fed is reducing its asset purchases is “pretty much baked in the cake” and that central the bank shouldn’t start raising interest rates until the second half of next year.

“We’re closing in on the final stages of tapering,” Williams told reporters Monday following a panel discussion in Dallas. “I don’t see a lot of benefit to modifying” the pace unless there’s a “dramatic change” in the economic outlook, he said.

The Federal Open Market Committee, which is buying bonds to hold down long-term interest rates and spur growth, last month announced plans to cut monthly asset purchases by $10 billion, to $45 billion. Fed Chair Janet Yellen told lawmakers this month that the Fed is set to end the program in the fall.

“Given where inflation is and where the labor market is, given the various risks to the outlook, I don’t think it’s appropriate to start raising interest rates until the second half of next year,” Williams said. (Bloobmerg)