The president of the Federal Reserve Bank (FED) of New York, John Williams, said Friday that overwhelmingly anticipates a general weakening in the US economic data as tariffs continue to take root.
Key aspects
Tariffs will boost inflation between 3.5% and 4% this year.
The economy is besieged by very high levels of uncertainty.
Tariffs and trade are key engines of enormous uncertainty.
A modestly restrictive monetary policy is totally appropriate.
The Fed policy is well positioned for what is to come.
The current monetary policy of the USA. Uu. It allows the Central Espacio Bank to react.
I remain completely committed to bringing inflation back to 2%.
Long -term inflation expectations are anchored, we must maintain that.
I hope the growth will slowly be 1% this year.
There is an unusually wide range of results that are coming for the economy.
The economy began the year on solid bases.
I anticipate that the unemployment rate increases between 4.5% and 5% this year.
The key question is whether the highest inflation will be transferred to 2026.
There is still enough uncertainty about tariffs, but there are more details.
How other countries respond to tariffs is a big problem.
The key is not to overcome any particular data.
Soft data have weakened a lot, but hard data has been maintained so far.
Survey data has weakened, spending data has been maintained.
The current economy is not in stagflation. This is not the 1970s.
The economy is not having stagflation, but new government policies are having a great impact.
The best risk response is to achieve the objectives of the Fed.
Inflation expectations are anchored.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
