Fed’s bond buying doesn’t appear to be creating imbalances in financial sector: NY Fed's Williams

The Federal Reserve's bond buying does not appear to be creating imbalances in the financial sector, New York Fed Bank President John Williams said.

The Fed's monthly purchases of $120 billion in Treasury and mortgage bonds are working as designed to help the economy recover from the coronavirus pandemic's impact, Williams was told the Wall Street Journal in an interview Tuesday.

"I don't take for granted, even with the good news we’re seeing, that we're going to get that full and robust recovery that we really want without really strong monetary policy support," Williams told the Journal.

The positive impact of the bond buying in lowering long-term borrowing costs could become more important, Williams said, adding "I think the effects will even be greater in the sense of supporting strong growth over the next few years".