Central Banks
IMF, Fed’s Williams Differ on Rate Rise’s Role in Bank Failures
- Williams dismisses link between rapid hikes and bank stress
- IMF says Fed moves have exposed financial vulnerabilities
John Williams
Photographer: Bloomberg/BloombergThis article is for subscribers only.
Federal Reserve Bank of New York President John Williams has dismissed the idea that the central bank’s rapid fire interest rate increases were behind last month’s failure of two US banks. The International Monetary Fund begs to differ.
In its Global Financial Stability Report published Tuesday, the fund tied the closing of Silicon Valley Bank and Signature Bank to the aggressive tightening of credit by the Fed.