Fed’s Williams: Inflation Surge Looms as Policy Remains Restrictive

Federal Reserve Bank of New York President John C. Williams warned of inflationary pressures and economic growth challenges in his April 11, 2025 speech. He anticipates tariffs could propel inflation to 3.5%-4% while restricting economic expansion to around 1% this year. To combat this, the Fed is maintaining a federal funds rate of 4.25%-4.50%. This cautious approach balances economic risks against persistent uncertainty.