MNI POLICY: Williams:Fed Doing All It Can to Keep Markets Open

By Jean Yung

     WASHINGTON (MNI) - New York Fed President John Williams on Thursday said

officials will do everything they can to support markets and put the economy on

a strong footing once the pandemic passes.

     The Fed is "running more open market operations, for greater sums, than at

any time in our history" to supply liquidity and stabilize the system, Williams

said in remarks prepared for the Economic Club of New York. 

     "These strong and timely actions averted a potential shutdown in the flow

of credit and are providing funding and stability at a time of extraordinary

volatility in markets," he said.

     "Although stresses in financial markets will not entirely abate until the

pandemic is behind us, we have seen material improvements in measures of

liquidity and market functioning in key parts of the U.S. financial system."

     --NEAR ZERO

     Williams reiterated the Fed will keep its key lending rate near zero "until

it is confident that the economy has weathered recent events and is on track to

achieve the Fed's maximum employment and price stability goals." 

     The pandemic is unlike any challenge policymakers have faced, and even

after record job losses "more economic pain is still to come," Williams said. 

     "The economy is under distress in ways we've not experienced in our

lifetimes," he said.

--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

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