Federal Reserve's Williams: Demand for U.S. debt remains strong

Golden Financial reports that on May 8th, the President of the New York Federal Reserve, Williams, stated on Thursday that despite the large scale of government borrowing, demand for U.S. Treasury bonds remains strong. Williams said that the Federal Reserve is “closely monitoring” the government’s extremely high borrowing levels. He pointed out that, although this may be surprising, market demand for U.S. Treasuries is still “huge,” and “the United States is still regarded as the world’s strongest economy” and an ideal safe haven for funds, “even in the face of various geopolitical issues and other factors, this situation has not changed.” Williams also stated that, under the energy shocks caused by the Middle East war, the U.S. economy has shown considerable resilience. He said that, given the surge in energy prices, the “biggest question” is how the situation will develop, and added that, for the still high inflation, the Federal Reserve will “ensure” and is committed to bringing the inflation rate back to the 2% target level. (Jin10)