Williams Says Fed’s Restrictive Stance Is Entirely Appropriate

Federal Reserve Bank of New York President John Williams said he expects tariffs to have a bigger impact on inflation in the months ahead, making the US central bank’s current restrictive stance “entirely appropriate.”

“Although we are only seeing relatively modest effects of tariffs in the hard aggregate data so far, I expect those effects to increase in coming months,” Williams said Wednesday in remarks prepared for an event organized by the New York Association for Business Economics. “Maintaining this modestly restrictive stance of monetary policy is entirely appropriate.”