Comments from NY Fed President John Williams on stablecoins and crypto:
It’s still early days on questions involving stablecoins
Stablecoins are more about payments as opposed to stores of value
Doesn’t see rising financial stability risks from stablecoins
Doesn’t know yet how stablecoins will impact demand for reserves
Fed’s ample reserves system is designed to be flexible, can respond to stablecoin impact
NY Fed President John Williams on monetary policy:
Fed is actively debating scenarios around inflation
Fed Minutes captured a ‘collective reaction function’
AI investment is a driver of inflation
In the longer run, AI investment will be a positive supply shock