New York Federal Reserve President John Williams on Tuesday defended the US central bank’s framework for implementing monetary policy, while saying it could be adjusted as financial markets evolve, Reuters reported.
Providing "ample" reserves to the financial system, alongside the Fed’s existing tools for managing short-term interest rates, "has proven to be highly effective at delivering interest rate control and supporting the smooth functioning of core financial markets," Williams said in prepared opening remarks at a New York Fed conference on the Treasury market.
