Williams Affirms No Immediate Federal Rate Adjustments Needed

Federal Reserve Bank of New York President John Williams stated that the current monetary policy is well positioned and there is no imminent need to adjust interest rates, despite growing concerns over the inflationary impact of the Trump administration’s tariffs. Williams warned that these tariffs are likely to increase inflation, slow economic growth, and raise unemployment, but emphasized the Fed should wait for more data before making any policy changes. He projected that economic growth could slow to below 1% this year and the unemployment rate could rise to between 4.5% and 5%. Williams highlighted the importance of ensuring any tariff-driven inflation does not become persistent, reiterating the Fed's goal to maintain inflation around its 2% target. These comments come amid public pressure from President Trump for the Fed to cut rates, although Williams and other Fed officials advocate a cautious approach. Market expectations for a rate cut remain high, but Fed leaders signal little support for such a move in the near term.