Federal Reserve's Williams: Expects tariffs to exacerbate inflation and slow economic growth

ChainCatcher news, according to Jinshi reports, Federal Reserve's Williams expects that tariffs will drive up inflation and suppress economic growth, and stated that the Federal Reserve's monetary policy stance is "in the best position to manage these risks as much as we can."

He stated, "In times of uncertainty, consumers may delay making significant decisions, such as buying a house or a car, and businesses may postpone investments until they have a better understanding of the future," "When households and businesses cut back on spending, economic growth slows."

As February data shows that inflation remains above target, Williams stated that it is correct for the Federal Reserve to keep interest rates at a level that moderately restrains the economy. "The current moderately tight monetary policy stance is entirely appropriate," he said.

Williams also remarked, "In times of turbulence and uncertainty, good long-term inflation expectations are crucial to ensuring price stability," "It is essential to maintain inflation expectations as we pursue our maximum employment goal and restore inflation to the long-term target of 2%."