Fed's Williams: Tariffs are inflation risk, rate policy in good place
NEW YORK (Reuters) -Federal Reserve Bank of New York President John Williams said Tuesday he expects Trump administration tariffs to drive up inflation to some degree, while reckoning that for now, central bank interest rate policy is in the right place and does not need to be changed. “My view is, based on what we know today, given all the uncertainties around that, I do factor in some effects from tariffs now on inflation, on prices, because I think we will see some of those effects later this year,” Williams said at an event held by Bloomberg in New York. The official noted that tariffs that hit consumer goods could flow though quickly to inflation while other parts of the economy might see a slower moving impact.
