NEW YORK (MaceNews) – The Federal Reserve is watching closely as the coronavirus situation unfolds, and the central bank is ready to use its tools as needed to support the economy, John Williams, president of the Federal Reserve Bank of New York said Thursday.
Williams said the Fed’s 50 basis point rate cut this week “provides meaningful support to the economy and will help sustain the economic expansion. The outlook is evolving and highly uncertain. In the weeks and months ahead, we will continue to closely monitor developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy.”
Williams said the Fed acted to cut rates in close coordination with G7 colleagues, and would continue to work in alignment with its international counterparts.
On the New York Fed’s specific role in implementing monetary policy, William said his bank would “ensure that the supply of reserves in the banking system remains ample, consistent with the FOMC’s direction.“
“We are monitoring conditions in money markets closely,” he said. “We remain flexible and ready to make adjustments to our operations as needed to ensure that monetary policy is effectively implemented and transmitted to financial markets and the broader economy.”