Fed's Williams said the Fed will "absolutely not" let market levels dictate policy, while noting the central bank is watching financial markets closely. He said the Fed must remain independent and continuously assess all factors affecting the economy and outlook. Williams expressed optimism on AI's prospects and called recent sector swings unsurprising, saying asset-price volatility is inevitable in a highly innovative, fast-changing world. On corporate borrowing, he said current leverage differ

Fed's Williams said the Fed will "absolutely not" let market levels dictate policy, while noting the central bank is watching financial markets closely. He said the Fed must remain independent and continuously assess all factors affecting the economy and outlook. Williams expressed optimism on AI's prospects and called recent sector swings unsurprising, saying asset-price volatility is inevitable in a highly innovative, fast-changing world. On corporate borrowing, he said current leverage differs from levels that caused the crisis two decades ago and high corporate profitability limits his near-term financial-stability concerns.