Fed's Williams: Central banks should consider unconventional policy tools for use in future
|Delivering his opening remarks at a two-day conference on Asian economic policies at the San Francisco Fed, San Francisco Fed President John Williams argued that to fight the next recession, they would need to do more than just cut interest rates.
Key quotes (via Reuters)
Calls for global rethink of monetary policy frameworks.
Low rates worldwide means dealing with any future recession will be harder than in past.
Global central banks need to find strategies that work well together, and are not at cross-purposes.
Central banks should also consider negative rates, higher inflation target, or targeting price-level or nominal income.
Negative interest rates need to be on the list of possible tools for U.S. in a recession.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.