Fed’s Williams says tariffs will push up inflation, unemployment

John Williams predicts that tariffs will push inflation rates to 3.5% to 4% this year, a significant increase from February’s 2.5%. He emphasizes the importance of managing inflation expectations to prevent long-term price pressures.

Williams anticipates that the real GDP growth will slow to below 1%, and the unemployment rate will rise to between 4.5% and 5%. He believes the Fed’s current monetary policy is suitable to address the economic risks posed by tariffs.