Gold soars to record high over $3,900/oz amid yen slump, US rate cut bets
Investing.com -- New York Federal Reserve President John Williams said on Friday that central banks need to develop strategies to operate in environments of unpredictable change, which he believes will continue "for the foreseeable future."
Speaking at an event in Amsterdam, Williams highlighted several factors contributing to this uncertainty, including "the effects of ongoing global demographic shifts, artificial intelligence, and potentially transformative innovations in our financial systems."
Williams, who serves as vice chair of the Federal Open Market Committee (FOMC), emphasized that central banks require robust principles and strategies that can handle various contingencies, while acknowledging that novel situations will still arise.
He noted that previously unconventional monetary tools, such as bond buying programs, have now become standard components of central banking toolkits.
Williams stressed the importance of anchoring inflation expectations, saying this critical aspect "cannot be taken for granted." He also pointed out that central bank policies are more effective when the public understands them.