Fed’s Williams Says Banking Stress Likely to Tighten Credit
- New York Fed chief says banking sector has stabilized
- Officials need to monitor credit conditions as they evolve
John Williams
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Federal Reserve Bank of New York President John Williams said that while the banking sector has stabilized following the second-largest bank collapse in US history, the recent stress may make it more challenging for households and businesses to access credit.
“The banking system is sound and resilient,” Williams said Wednesday in remarks prepared for an event organized by the Money Marketeers of New York University. “Nonetheless, these developments will likely lead to some tightening in credit conditions for households and businesses, which in turn will weigh on spending.”