Federal Reserve Bank of New York President John Williams said on Monday that financial system troubles that drove the central bank to provide large amounts of credit to banks is not collateral damage from the Fed’s aggressive effort to lower inflation.
“I personally don’t think the pace of rate increases was behind the issues at the two banks back in March,” Williams said at an event held at New York University.
Analysts say some of the issues faced by banks were due to not having properly prepared for an environment of rapidly rising rates, which has defined monetary policy over the last year as the Fed tried to bring down high levels of inflation. Williams said he viewed the trouble at the two banks as unique in nature and unlikely to reflect broader trends in the financial system.
Williams said that while past episodes of financial sector stress point to tightening credit, as it now stands, "we haven't seen clear signs yet of credit conditions tightening and we don't know how big this effect will be" if it happens.that he believes inflation, now at around 5%, will come down slowly over time and will ease to 3.75% this year and will likely ebb to the 2% target by 2025.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold Price Forecast: XAU/USD eases amid risk aversion, United States inflation, Federal Reserve Minutes eyedGold price (XAU/USD) extends the previous pullback from 13-month high even as Easter Monday holiday restricts the market moves. In doing so, the preci
Read more »
Fed's Williams says there are no clear signs of credit crunchThere are no clear signs of a credit crunch on the U.S. economy, New York Fed President John Williams said Monday.
Read more »
Uncertainty next for Mavs after reserve-filled loss to SpursSandro Mamukelashvili scored 23 points, and the San Antonio Spurs sent Dallas into an offseason of uncertainty with a 138-117 victory over the Mavericks in a meaningless, reserve-filled finale.
Read more »
Uncertainty next for Mavs after reserve-filled loss to SpursLuka Doncic, Kyrie Irving and four other regulars were out for Dallas, which is being investigated by the NBA for similar roster decisions two days earlier against Chicago.
Read more »
Uncertainty next for Mavs after reserve-filled loss to SpursSandro Mamukelashvili scored 23 points, and the San Antonio Spurs sent Dallas into an offseason of uncertainty with a 138-117 victory over the Mavericks in a meaningless, reserve-filled finale.
Read more »
Mavs turn focus to Irving after reserve-filled loss to SpursThe Dallas Mavericks are now turning their attention to re-signing Kyrie Irving.
Read more »