Economics
Financial Risks Shouldn’t Shape Fed Rate Decisions, Williams Says
- NY Fed chief says must strengthen financial market resilience
- Monetary policy shouldn’t be ‘jack of all trades’: Williams
This article is for subscribers only.
The Federal Reserve should stay focused on its economic goals and avoid incorporating financial stability risks into its deliberations as it raises interest rates, New York Fed President John Williams said.
“Using monetary policy to mitigate financial stability vulnerabilities can lead to unfavorable outcomes for the economy,” Williams said Wednesday in remarks prepared for a Treasury market conference at the New York Fed. “Monetary policy should not try to be a jack of all trades and a master of none.”