New York Fed President: "Tariff Impact on Prices Will Appear Within This Year"

John Williams, President of the Federal Reserve Bank of New York.

John Williams, President of the Federal Reserve Bank of New York, forecasted that the inflationary impact of the Trump administration's tariff policies would become apparent within this year.

On the 4th (local time) at the Bloomberg Invest Conference held in New York, Williams stated, "Based on all the information and uncertainties we currently know, I am considering the impact of tariffs on inflation to some extent. I believe that the effects of tariffs will partially appear within this year."

However, Williams emphasized that there is uncertainty regarding the actual impact of tariffs on the economy. He said, "We need to think about how tariffs affect economic activity, especially how they influence corporate investment decisions and consumer spending. This is a point with significant uncertainty."

Regarding the current degree of monetary policy tightening, he described it as "somewhat tight" and said he does not feel the need to adjust interest rates at the moment. He also expected that inflation would gradually converge to the central bank's target of 2% over time.

Williams is responsible for the New York Fed, which conducts open market operations. Wall Street evaluates Williams' remarks with weight comparable to that of Jerome Powell, Chair of the Federal Reserve.

Earlier, Chair Powell stated that the U.S. economy remains strong and there is no need to rush interest rate cuts. The Fed is scheduled to hold the Federal Open Market Committee (FOMC) meeting on the 18th and 19th to decide on monetary policy adjustments.

This content was produced with the assistance of AI translation services.