The central tendency of Federal Reserve officials in March was for three or four rate hikes this year and that is still the "right way to think about" the policy outlook in May, said San Francisco Fed President John Williams on Friday. With the labor market getting stronger and inflation perhaps rising a bit above 2% target, continued gradual rate hikes are appropriate, he said. Given the economic outlook, it may be appropriate for the Fed to raise the fed funds rate above its long-run neutral level, which is near 2.5%, Williams said. The San Francisco Fed president, who will move to head the New York Fed next month, said the economy was in a "goldilocks" period of strong growth and moderate price increases. "I don't see any rapid increase in inflation coming," he said.