Fed’s Williams says central banks must prepare for the unexpected

By Michael S. Derby

(Reuters) -Federal Reserve Bank of New York President John Williams said Friday that unpredictable change is inevitable and central banks need to be aware of that and have strategies to operate in those environments.

Williams’ comments, which came in prepared remarks for an event in Amsterdam, did not address the outlook for U.S. monetary policy. Williams serves as vice chair of the rate-setting Federal Open Market Committee, which cut interest rates last month as officials sought to offset rising risks to the job market.

“Unpredictable change and uncertainty will certainly continue to be with us for the foreseeable future,” Williams said, flagging issues like “the effects of ongoing global demographic shifts, artificial intelligence, and potentially transformative i