Federal Reserve's Williams: Inflation and employment risks are becoming balanced; inclined to hold steady

Golden Finance reports that on April 3, Federal Reserve Bank of New York Chair William said that the inflation and employment risks stemming from rising energy prices have become “balanced,” and he is inclined to support keeping interest rates unchanged. Williams said, “Monetary policy, through the actions we took last year and our current stance, has in effect been fully prepared to balance these risks—this is what we need to do.” Williams also said he believes losses in private credit (in the non-bank lending space) will not create systemic risk, even though some investors in that space have demanded earlier redemptions. Williams said this is mainly due to the repricing of underlying loans. He said, “I don’t think it will currently pose systemic risk to our financial system.” And he noted that policymakers are “closely watching” banks’ exposure to risk. When asked whether certain private credit funds could be viewed as “too big to fail,” he responded, “Absolutely not.”