Lates News

New York Fed President Williams said that the inflation and employment risks brought about by the rise in energy prices have now reached a "balance," and he leans towards supporting keeping interest rates unchanged. Williams stated: "Monetary policy through our actions last year and our current stance is actually well-prepared to balance these risks, which is exactly what we need to do." Williams also stated that he believes the losses in private credit (non-bank lending sector) will not pose systemic risks, despite some investors in this sector redeeming early. Williams attributed this mainly to the repricing of underlying loans. He said: "I don't think it presents systemic risks to our financial system at this point." and pointed out that policymakers are "closely monitoring" banks' risk exposures. When asked whether some private credit funds could be deemed "too big to fail," he responded: "Absolutely not."