Federal Reserve Bank of New York President John Williams said on Tuesday that he expects that United States President Donald Trump's tariffs will boost the inflation in the country to roughly 3% in 2025, after which he sees it gradually declining to 2% over the next two years, and that he also anticipates the tariffs and the reduced immigration will lead to a slower GDP growth this year due to slow labor force growth.
"Given the continued uncertainty, the solid labor market, and inflation still above our 2 percent goal, the [Federal Open Market Committee] FOMC decided at its meeting last week to leave the target range for the federal funds rate unchanged at 4-1/4 to 4-1/2 percent," Williams said in a speech at NY CREATES Albany NanoTech Complex. "Maintaining this modestly restrictive stance of monetary policy is entirely appropriate to achieve our maximum employment and price stability goals," he added.
