John Williams, President and CEO of Federal Reserve Bank of NY Discusses Evolving Financial Markets and Interest Rates

At the 2026 Treasury Market Conference, John C. Williams, president and CEO of the Federal Reserve Bank of New York, discussed how financial markets are changing and what that means for monetary policy.

Williams covered new forms of finance, financial-market infrastructure, and how the Federal Reserve uses bank reserves to help manage interest rates. He also emphasized the importance of flexibility as markets and the economy continue to evolve.

The remarks offer a useful look at how Federal Reserve officials are thinking about financial markets, monetary policy, and where the economy may be heading.

Adapting Monetary Policy to Changing Financial Markets

• Financial markets are evolving, requiring monetary-policy tools to adapt.
• The transition from LIBOR and expansion of central clearing strengthened market infrastructure.
• Stablecoins and tokenized finance present new areas for policymakers to examine.
• The Fed’s ample-reserves framework helps maintain control over interest rates.
• Williams emphasized interest-rate control, low reserve costs, and flexibility in managing reserves.

Williams, J. C. (2026, September 22). Do you remember? Federal Reserve Bank of New York. https://www.newyorkfed.org/newsevents/speeches/2026/wil260922