New York Fed President sees no need to change monetary policy

John Williams, Federal Reserve Bank (Fed) of New York President, sees no imminent need to change monetary policy. Williams, who is also vice chairman of the rate-setting Federal Open Market Committee (FOMC), notes significant uncertainty around the US economic outlook. 

The Fed official believes the country’s GDP growth is likely to be less than 1% this year amid the unemployment rate surging from the current 4.2% to 4.5–5%. Meanwhile, import duties imposed by US President Donald Trump are to drive up prices. Williams expects to see tariffs’ impact on inflation as early as this year. He states it is critical for the Federal Reserve to make sure no price rises prove to be enduring.

Fed Chair Jerome Powell also warns of mounting inflationary pressures due to import duties. According to the central bank governor, it is now necessary to monitor the US economy for updated data before changing interest rates.