Economics
Williams Says Fed Rate Hikes Helping Curb Financial Risk-Taking
- Effects on markets an added benefit, New York Fed chief says
- Williams say U.S. may sustain lower unemployment than thought
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U.S. interest-rate increases will help reduce risk-taking in financial markets, Federal Reserve Bank of New York President John Williams said.
"The primary driver of us raising interest rates is just the fact that the U.S. economy is doing so well in terms of our goals,” Williams said Wednesday in a reply to questions after a speech in Bali, where the annual meetings of the International Monetary Fund and World Bank are taking place. “But I would also add that the normalization of monetary policy in terms of interest rates does have an added benefit in terms of financial risks.”