Federal Reserve's Balance Sheet Contraction Not Hindering Monetary Policy Goals: John Williams

Federal Reserve Bank of New York President John Williams stated that the contraction of the central bank's balance sheet is not disrupting its monetary policy objectives. According to Williams, the process is already accounted for in the market and does not conflict with potential changes in short-term rate policy.

Federal Reserve Bank of New York President John Williams emphasized on Friday that the contraction of the central bank's balance sheet is not interfering with broader monetary policy objectives.

Williams asserted that the quantitative tightening process is already factored into the market, limiting its impact on the economy. He noted that this process does not conflict with the anticipated easing of short-term rate policy.

Williams made these remarks during a meeting at the Council on Foreign Relations, underscoring the alignment between balance sheet actions and overall monetary strategy.

(With inputs from agencies.)