New York Fed’s Williams Underscores Importance of Central Bank Independence

New York Federal Reserve President John Williams said Wednesday that safeguarding the U.S. central bank’s independence is “very important” to its ability to deliver price stability and maximum employment. In a CNBC interview, Williams stressed that policy decisions must be insulated from political influence and “driven by the data.” Williams did not signal any immediate shift in the policy outlook, reiterating that officials will continue to weigh incoming economic indicators before adjusting interest rates. His remarks come as policymakers debate the appropriate balance between fiscal authorities and the Fed in guiding the economy.