MNI BRIEF: Fed Independence Protected By Law - Williams

Federal Reserve independence is very important because it delivers better results in terms of price stability and economic stability and that independence is protected by law, New York Fed President John Williams said Friday. 

The "most important thing is, let's do our jobs as best as we can, and that protects us against, hopefully, some criticism," said Williams, answering an audience question at a Puerto Rico Chamber of Commerce event. "We are committed to carrying out as best we can our public mission. We're not elected officials. I'm not an elected official." 

"The second is, in the Federal Reserve Act, we do have a significant degree of independence," he added. "These are not just by tradition, but by law, we have the function of carrying out monetary policy on behalf of the American people." (See: MNI INTERVIEW: Fed Firm On Swap Lines, If Independent - Sheets)

"What we're going to be - What I do and what I have seen throughout my career is we stay focused on our job, regardless of what other people may say," Williams said. "Our independence is very important, not because we like it, but because it delivers better results in terms of price stability and economic stability. We have our independence in the Federal Reserve Act, and we're just going to stay focused on doing the job." The Federal Reserve was created by an act of Congress in 1913 and since 1977 has been charged with promoting maximum employment and stable prices.