Fed's Williams: Higher tariffs will impact growth and inflation.
Fed's Williams: Higher tariffs will impact growth and inflation. Federal Reserve bank of New York President Williams said in a Bloomberg interview that policy makers are most focused on confidence and the impact of uncertainty, but for now the U.S. economy and monetary policy are "in a good place". Williams adding that hew views the "tariffs as a negative supply shock" and that this "has various effects on the economy. One is it affects inflation. It probably will boost inflation by a few tenth over the next year. It affects demand a bit and growth in the short run. But also it has negative effects on the value chains and how our economic system works". On interest rate Willian said he doesn't "see any reason to have a bias upward or downwards in the current circumstances", adding that the Fed will "evaluate, reassess and see what is the best decision to get us to our goals".