Williams: Must watch how economy responds as it presses toward neutral rate

WASHINGTON (Reuters) – The Federal Reserve might want to preserve a cautious eye on how the financial system reacts because it raises rates of interest, and scale the tempo of its fee will increase accordingly, New York Fed President John Williams stated on Saturday.

Williams, citing occasions in 2019 when the financial system slowed because the Fed approached a impartial fee, stated “the expertise from that’s that we’ve to maneuver to a extra regular degree however be sure we’re assessing and evaluating…There isn’t a query that’s the path we’re shifting. Precisely how rapidly we try this depends upon the circumstances.”

(Reporting by Howard Schneider; Modifying by Diane Craft)