'Some of the concerns about the costs and the negative effects ended up being much smaller than some of the fears,' the New York Fed president said.
"We have the same toolkit we had in the last decade," he said during a forum at the University of California San Diego. "I think we learned a lot about the benefits and some of the limitations. But we've also learned that some of the concerns about the costs and the negative effects ended up being much smaller than some of the fears.
While he characterized the U.S. economy as "in a good place", Williams said he's more worried about growth and low inflation in other parts of the world. "Right now, my view is obviously we've got monetary policy in the right place. I think we are taking into consideration all these other issues," Williams said.
The Fed has cut rates twice this year and is now expected to approve a third reduction at its Oct. 29-30 meeting. The benchmark funds rate, which banks charge to each other for overnight borrowing, is targeted in a range between 1.75% and 2%. Williams briefly addressed the recent funding issues in the overnight lending market, saying the New York Fed, which conducts the operations, is working to correct the problems and "really understand what happened in the plumbing of the financial system."
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