Economic Buzz: Interest rate control is core responsibility of Federal Reserve, says NY Fed President Williams

New York Federal Reserve President John Williams stated yesterday that the Fed?s system for managing monetary policy has worked well, while the framework can be modified as financial markets change. He noted that as markets evolve over time, we must ensure that policy tools are fit for purpose to carry out their necessary functions. President Williams enumerated the three most important principles for monetary policy implementation: interest rate control, low opportunity costs, and elasticity. Interest rate control, he said, is absolutely foundational and a core responsibility of the Federal Reserve.

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