NextFin news, Federal Reserve Bank of New York President John Williams stated on Friday, October 3, 2025, in Amsterdam that central banks must be prepared for unpredictable changes that are inevitable in the global economy. Williams highlighted the necessity for central banks to have robust principles and strategies to operate effectively amid uncertainty.
Williams, who also serves as vice chair of the Federal Open Market Committee (FOMC), delivered these remarks during a prepared speech at an event in Amsterdam. He did not comment on the immediate outlook for U.S. monetary policy but underscored the importance of readiness for a range of contingencies.
“Unpredictable change and uncertainty will certainly continue to be with us for the foreseeable future,” Williams said, pointing to factors such as ongoing global demographic shifts, advances in artificial intelligence, and potentially transformative innovations in financial systems as key drivers of change.
He noted that central banks must anchor inflation expectations firmly, as this remains critical and cannot be taken for granted. Williams also remarked that strategies once considered unconventional, like bond buying, have become standard tools in central banks’ operational toolkits.
Williams’ comments come in the context of recent monetary policy actions, including the FOMC’s decision last month to cut interest rates to mitigate rising risks to the U.S. job market. His emphasis on preparedness reflects a broader recognition of the complex and evolving challenges facing central banks worldwide.
Reporting by Michael S. Derby; editing by Diane Craft, Reuters.
Explore more exclusive insights at nextfin.ai.
