Fed's Williams speaking at a WSJ conference
NY Fed Pres and vice chairman of the Fed Williams is speaking on a panel at the Wall Street Journal:
- Fed has taken an approach that will adjust naturally if economy does better than expected
- Accommodative monetary policy is helping the economy weathered the storm
- Monetary policy will help the economy return to full employment as soon as possible
- Fiscal policy plays important role in building bridge between now and when a vaccine becomes available
- Fed policy is very accommodative
- Fed needs to have a flexible policy approach
- Feels positive about vaccine developments
- Fiscal policy is the most powerful tool over next 6 months
- Sees a significant improvement in credit conditions
- Although emergency facilities did a great job in supporting financial markets, we've seen a significant improvement
- We could restart lending programs if we see a significant need in the future
- dominant purchase of asset purchases is now to provide sustained support to the economy
- based on how we see the economy evolving, we can adapt and optimize programs
- what were focused on is how to have our policy best positioned to support a strong economic recovery in 2% inflation
- as we move forward and get greater clarity about the outlook of the economy, the Fed will better frame asset purchase programs
- when various central banks act together that creates positive effects
