MNI BRIEF: Fed's Williams Sees Inflation Uptick From Tariffs
MNI (WASHINGTON) - New U.S. tariffs will likely push prices higher later this year but also raise concerns about the ongoing strength of business investment and consumer spending, and the Federal Reserve should take its time before making any further cuts to interest rates, New York Fed President John Williams said Tuesday.
"I do factor in some effect of tariffs on inflation on prices. I do think we're going to see that later this year," Williams told a Q&A at a Bloomberg Invest event. "We don't know how long the tariffs will apply, we don't know how other countries will respond." (See MNI INTERVIEW: Fed To Focus On Growth Drag From Tariffs-Sahm)
Williams said monetary policy is "modestly restrictive" and has the "right balance" right now, allowing the Fed to take its time before deciding any next moves on monetary policy.
"I don't see the need to change it right away," he said.