Federal Reserve's Williams: Current interest rate policy remains "fully appropriate"

Federal Reserve official Williams suggests he is not willing to support a rate cut before this month's FOMC meeting. He believes that tariffs may further drive up inflation. Williams said that price data has already shown that the new trade barriers set by the Trump administration are raising the cost of some consumer goods. Williams expects that there may be more price increases in the future. "For goods that are more vulnerable 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. Williams said that considering the risk of accelerated inflation in the remaining time until 2025, the Fed should currently take a cautious stance on lowering the benchmark interest rate. Williams said, "Maintaining this moderately restrictive monetary policy stance is completely appropriate." He also predicts that by the end of 2025, the unemployment rate will rise to 4.5%, the inflation rate will reach 3.5%, and this year's economic growth will be around 1%, significantly slower than last year.