The Federal Reserve (FED) Williams: Tariffs will slow the US economy rise and inflation rise this year

Gate News bot message, The Federal Reserve (FED) Williams expects the US economy to slow down this year, and the inflation rate will rise, largely due to the impact of trade tariffs.

Williams said, “I expect uncertainty and tariffs to dampen spending, reduce immigration, and therefore slow the rise of the workforce,” so the economic rise this year is expected to slow significantly to around 1%, and the unemployment rate will rise from the current 4.2% to 4.5% by the end of the year.

He also expects that as Trump's tariff policy drives up prices, the inflation rate will rise to 3%, and then gradually slow down to the target of 2% over two years. Williams did not make any forward-looking comments on interest rate policy.

He said when talking about the FOMC meeting: "Maintaining this moderately restrictive monetary policy stance is entirely appropriate for achieving maximum employment and price stability goals." The current interest rate position of The Federal Reserve (FED) "gives us time to closely analyze newly received data, assess the evolving outlook, and evaluate the risk balance of achieving our dual mandate goals."

Information source: FX168