Fed's Williams says rate-control toolkit is working well

Federal Reserve Bank of New York President John Williams said Tuesday that the Fed’s system for implementing monetary policy—centered on supplying “ample” reserves—has been “highly effective” in controlling short-term interest rates and supporting core market functioning. Speaking at a conference on the Treasury market at the New York Fed, Williams stressed the framework isn’t fixed and can be adjusted as financial markets evolve. He said the Fed will be responsive if demand for reserves changes due to regulation or market structure, shifting the supply over time. The remarks did not include guidance on future rates and Williams was not scheduled for questions.