Will Inflation Rise Again? Williams Says Import Tariffs Are the Main Problem
John Williams, President of the Federal Reserve Bank of New York, stated that the impact of the import tariffs imposed by the Trump administration is only just beginning to be felt and is expected to intensify in the coming months. Although the effects are currently moderate, he anticipates that inflationary pressures will intensify over time. He also noted that some companies have begun to pass on some of the additional costs of the tariffs to consumers.
Williams emphasized that the Fed's current restrictive monetary policy stance is the right step to achieve the goals of price stability and maximum employment. He stated that this policy allows sufficient time to analyze incoming data, assess the economic outlook, and evaluate existing risks.
Williams projects that US real GDP growth this year will reach around 1%, with the unemployment rate expected to rise to around 4.5% by the end of the year. Inflation is expected to be in the range of 3 to 3.5% in 2025, then decline to around 2.5% in 2026, and reach the 2% target in 2027.
Source: Newsmaker.id
