John C Williams: Navigating unpredictable terrain
Remarks by Mr John C Williams, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the conference "Monetary policy, financial markets, and challenges ahead: celebrating the centennial of the Central Bank of Chile", Santiago de Chile, 21 November 2025.
The views expressed in this speech are those of the speaker and not the view of the BIS.
Introduction
Good morning. It's a pleasure be here to celebrate the 100th anniversary of the Central Bank of Chile. The topic of my remarks today is inflation targeting, which is both an important part of Chile's central banking history and a core foundation of successful monetary policy.
Most central banks around the world have adopted inflation targeting regimes over the past 35 years, and Chile was among those leading the way. Although specifics vary across jurisdictions, these strategies share three principles: independence and accountability, transparency and the clear communication of an inflation target, and well-anchored inflation expectations, gained from the credibility that central banks build over time.
Today I will discuss the success of inflation targeting strategies in helping central banks achieve price stability and better economic outcomes. I'll also talk about how these strategies were critically important in managing uncertainty after the onset of the COVID-19 pandemic-and how they helped countries bring inflation down while minimizing disruptions to financial markets and economies.
But first, I must 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.