New York Fed's Williams Says Rate-Control Toolkit Working Well, Open to Adjustments

New York Federal Reserve President John Williams said on September 22, 2026, that the central bank's monetary policy implementation system is delivering effective interest rate control and supporting smooth functioning of core financial markets. Speaking at a Treasury market conference, Williams said supplying "ample" reserves through the current suite of tools "has proven to be highly effective." He added the framework is not fixed and can be adapted as market structure evolves. "There should be little or no opportunity cost to holding reserves at the central bank," Williams said, warning that high opportunity costs create distortions that interfere with market stability. The Fed will adjust reserve supply to match shifts in underlying demand, he added. Williams did not address the monetary policy outlook or interest rates and was not scheduled to take questions. His remarks come as the Fed, under Chairman Kevin Warsh, reviews its communications, data evaluation, and balance sheet through a series of task forces.