3/6/2019, 7:06 PM (Source: TeleTrader)

May consider negative rates, QE in downturn - Fed's Williams

The Federal Reserve Bank may consider negative rates and quantitative easing in case of an economic downturn, John Williams, president of the Fed of New York said during his speech at the Economic Club of New York, stating the cost-benefit trade-offs of negative rates were not as beneficial as QE.

Williams said no decisions have been made on the inflation framework, as the "risks don't seem to be out there at all" currently. The bank is not attempting to achieve high inflation, just its dual mandate, he claimed.

Further, the Fed official said the central bank wants to "anchor" inflation expectations at 2%, as it believes stable prices are critically important for the economy.

Baha Breaking the News (BBN) / MD