New York Fed's Williams Stresses Flexible Approach to Setting Interest Rates
November 19 2019 - 10:05AM
Dow Jones News
By Nick Timiraos
WASHINGTON -- Federal Reserve Bank of New York President John
Williams said the central bank is comfortable with how the economy
looks after cutting its benchmark rate three times this year --
adding the Fed isn't committed to any particular policy path in the
months ahead.
"The economy is in a very good place," Mr. Williams said at a
meeting of the brokerage-industry trade group Securities Industry
and Financial Markets Association, or Sifma. "I think we have
monetary policy in the right place. The key thing is we're not
locked into any particular decision."
Mr. Williams also is vice chairman of the rate-setting Federal
Open Market Committee. It met at the end of October and cut its
short-term benchmark rate for the third time since July to a range
between 1.50% and 1.75%. Officials lowered rates to cushion the
economy against the risks of a sharp slowdown from decelerating
global growth and a drop in business investment.
Most of his colleagues, including Fed Chairman Jerome Powell in
congressional testimony last week, have said the Fed can hold
steady for now, indicating the central bank is likely to leave its
rate unchanged at the final meeting of the year, on Dec. 10-11.
Mr. Williams stressed the importance of the Fed's flexibility
this year. After raising its benchmark four times last year to
guard against undesirable levels of inflation or financial bubbles,
the Fed scrapped plans early this year to keep lifting rates. It
then lowered rates beginning in July.
"We've proved that when the economic facts changed, we change
our view," Mr. Williams said during a moderated question-and-answer
session.
Write to Nick Timiraos at nick.timiraos@wsj.com
(END) Dow Jones Newswires
November 19, 2019 09:50 ET (14:50 GMT)
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