John C Williams: Attaining and maintaining price stability Remarks by Mr John C Williams, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the Money Marketeers of New York University, New York City, 19 April 2023. ***  As prepared for delivery Thank you for that kind introduction. Good evening, everyone. It's great to be here with the Money Marketeers. One of the big issues facing the economy is inflation. Inflation is far too high, and high inflation is hardest on those who can least afford essentials like food, shelter, and transportation. So today, I'm going to talk about the actions the Federal Reserve is taking to restore price stability. I'll also give my views on the economic outlook. But before I go any further, I need to give the standard Fed disclaimer that the views I express today are mine alone and do not necessarily reflect those of the Federal Open Market Committee (FOMC) or others in the Federal Reserve System. The Dual Mandate For a group like the Money Marketeers, the economic and financial events of the past few months-and even years-have provided a lot to talk about. In fact, the high inflation we see today stems from imbalances between demand and supply that started with the pandemic. A more recent issue has been the stresses that emerged last month in parts of the banking system. Conditions in the banking sector have stabilized, and the banking system is sound and resilient.
There has also been greater international dialogues between global Shariah scholars through several platforms and structured forums. This greater engagement facilitates convergence in interpretation and the greater leverage on technology for the active dissemination of information at real time further facilitates the harmonisation process. The next stage however is the need for more efficient information dissemination that would promote greater market transparency, price discovery and industry insights. The development of the Islamic Financial Knowledge Repository Portal by ISRA that will be launched today will be an important effort that can contribute to meeting this objective. As a knowledge database it centralises Shariah rulings and its justifications, legal and regulatory requirements. This is enriched by the latest collection of research and development in Islamic finance. This database will become an important source of reference and guidance for Shariah and industry practitioners, policy makers, researchers and academicians. This initiative by ISRA will not only promote greater understanding but mutual respect and recognition of Islamic finance. Concluding remarks The global Islamic finance industry is transitioning to its next stage of development and will stand to benefit from an enhanced universal appeal with a wider consumer and business segment, greater financial inclusion and harmonisation through increased research and development and more effective dissemination of information. A strong culture of applied research and development in Islamic finance that promotes innovative financial engineering, through practical and useful applied research findings is an integral part of industry-building efforts to support the industry’s growth.