Fed Representative Williams: Financial Conditions Play Key Role in Rate Policy Outlook

Federal Reserve Bank of New York President John Williams said Friday how financial conditions play out will be a key contributor to his thinking about what’s next for central bank interest rate policy.

“The economic outlook is uncertain, and our policy decisions will be driven by the data and the achievement of our maximum employment and price stability mandates,” Williams said in a speech in Bridgeport, Conn.

“I am confident that our actions will bring inflation down to our 2% longer-run goal.”

But Williams, who also serves as vice-chairman of the rate-setting Federal Open Market Committee, stopped short of saying what he thinks lies ahead for monetary policy in the wake of turbulent financial conditions tied to a two recent bank failures.

Source : Fed Representative Williams: Financial Conditions Play Key Role in Rate Policy Outlook