Fed officials cautious on rates amid tariff-related inflation risks

Written by Michael S. Derby and now travel

New York (Reuters) -The President of the Federal Reserve in New York John Williams said on Monday that monetary policy is “in a good position” of what the economy might do this year, because he admitted that there are risks that inflation may heat up again.

“Moderate monetary policy is moderate,” Williams said in an interview with Yahoo.

Williams added that although he cannot predict the date of the US Central Bank to change the current level of interest rates, keeping it in place “for some time” will allow officials to study the data received and determine what they need to do after that.

“The timing of any discounts at any price depends on what is happening with inflation. He pointed out that although he feels nervous that the Trump administration tariff will lead to high prices, he is also concerned that the fees will harm the labor market.

“There is a lot of uncertainty at the present time, and I think this makes the issue to wait and see how this is run.”

The central banks were weighing at a time of high economic uncertainty, as President Donald Trump continues to move forward in sabotage transformations in commercial policy while reducing the size of the federal government at the same time, making any effort to gain clarity about expectations of the economy.

This has proven uncertainty that it is a distinctive feature of the Federal Reserve prices meeting earlier this month, as policymakers retained the interest standard for the central bank overnight in a steady range in the range of 4.25 % -4.50 %, while maintaining hopes they will be able to reduce prices later this year.

Stagnation

The Federal Reserve’s view of the fact that the Trump tariff, which can be dramatically expanded on Wednesday, is almost certain to increase inflation in the short term, with great questions about the period when these gains may continue.

At the same time, uncertainty complicates companies ‘efforts to plan and invest, and it links consumers’ positions quickly and greatly.

All this leads to increasing concerns about economic shrinkage. On Sunday, Goldman Sachs experts said they will raise the possibility of recession to 35 % of 20 %, noting “the last sharp deterioration in family and business confidence, and data from White House officials indicating his greater desire to bear the recent economic weakness in following their policies.”