Fed’s Williams Dismisses Link Between Rapid Rate Hikes and Bank Stress
- New York Fed chief isn’t worried by market bets on rate cuts
- Says bank strain in the past has tightened credit conditions
John Williams
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Federal Reserve Bank of New York President John Williams rejected the idea that the central bank’s aggressive interest-rate increases precipitated financial strains highlighted by recent banking failures.
“I personally don’t think it was the case that the pace of rate increases was really behind the issues at the two banks back in March,” he said Monday during a moderated discussion organized by the Economics Review at New York University. “I think it’s well understood there were some pretty idiosyncratic specific issues with those institutions.”