Fed’s Williams: Current Rate Stance Remains “Fully Appropriate”

According to a report by Jinse Finance, Federal Reserve official Williams has indicated reluctance to support an interest rate cut ahead of this month's FOMC meeting. He believes that tariffs could further drive up inflation. Williams stated that price data already show that new trade barriers set by the Trump administration are increasing the costs of certain consumer goods. He expects that there may be more price increases in the future. "For those goods more susceptible to high tariffs... the price increases so far this year have far exceeded expectations based on past trends." Williams was referring to products such as household appliances, musical instruments, and luggage. He said that given the risk of accelerating inflation for the remainder of 2025, the Federal Reserve should currently take a cautious approach to lowering the benchmark interest rate. Williams stated, "Maintaining this moderately restrictive monetary policy stance is entirely appropriate." He also expects the unemployment rate to rise to 4.5% by the end of 2025, with inflation reaching as high as 3.5%, and this year's economic growth rate to be around 1%, a significant slowdown compared to last year.