Fed Williams doesn't think bank failures will be 'big negative' for the U.S. economy

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Fed Williams doesn't think bank failures will be 'big negative' for the U.S. economy
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The recent bank failures in the United States won't be such a 'big negative' on the U.S. economic outlook, said New York Fed President John Williams on Tuesday.

The failure of three midsized U.S. banks and subsequent financial stress is not likely to be a “big negative” on the U.S. economic outlook, said New York Fed President John Williams, on Tuesday.

“The banking system has really stabilized…but we are going to have to watch carefully,” Williams said, in an interview on Yahoo Finance. The Fed’s favorite inflation personal consumption expenditure index price index peaked at 7% last year but is still running at about 5% rate.Williams is the vice-chair of the Fed’s interest-rate setting committee and is the only regional Fed president to vote every year on policy decisions.

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