Federal Reserve Bank of San Francisco President John Williams said economic growth in recent months has fallen short of his expectations, partially eroding his confidence gains in the labor market will endure without monetary stimulus.
When James Tobin joined President John F. Kennedy’s administration in 1961, the U.S. economy was struggling to recover from its third recession in seven years. As a member of Kennedy’s Council of Economic Advisers, the Yale University professor put his theoretical research on asset markets to work in fashioning a novel strategy -- nicknamed Operation Twist -- to reduce long-term interest rates.
Federal Reserve Bank of San Francisco President John Williams, who has supported record stimulus, said the central bank should not rely on bond buying to buoy the economy once its benchmark interest rate returns to more normal levels.
Federal Reserve Bank of San Francisco President John Williams, who has consistently backed record accommodation, said monetary stimulus remains necessary and that it will support faster economic growth next year.