NY Fed President John Williams reveals trade and tariff uncertainty as the No. 1 issue freezing business investment decisions

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The Federal Reserve, like the rest of the world, is closely following President Trump trade and tariff policy with one high-ranking official warning, while the US economy is in a “good place.”

“I am talking to small business, medium-sized businesses and global business managers. Uncertainty and especially uncertainty around tariffs and trade policies are No. 1. “Morning Maria” Thursday.

“It’s very difficult if you are a business, make long-term decisions about investments, new products and such things,” he continued.

According to Williams, the US economy seems to have a “pause” on influential business and decisions that have noted that Fed is also waiting for further “clarity” global tariffs and trade restrictions.

After the Powell’s tariff warning, the shares are overcome, live updates

Investors on Wednesday raised their sales from US stocks after Jerome Powell said Policy developers will stand At any interest rate, mainly because President Trump’s tariffs, in his opinion, are greater than expected.

Fed building behind a string fence

In 2025, the Federal Reserve will make a pause at the rate. New York President John Williams is drying. (Getty Images)

“Since those big chicagoan Feris Buller once said:” Life moves quite fast. ” So far, we are well-positioned to wait for greater clarity before taking any adjustments to our policy, “he said in the Chicago Economic Club.

“My point of view is with 2% inflation we’ll be back and then [the] An important real exchange rate views are probably about 3 quarters, or some plus or minus, “said Williams.

“Based on the basis of our latest data as if inflation runs [at] about 2.3 percent. And you know that the economy grew very well last year, “he expanded.” I think the monetary policy is well positioned. I don’t see any need to change the Fed Fed exchange rate. “

Still the economic unpredictability could turn a turn in Fed programs.

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“There is only a lot of uncertainty about how the economy is going to play this year,” Williams said. “What we see in market pricing is a reflection of uncertainty, and what will happen in inflation?”

“We will definitely get consequences on prices and Inflation this year from tariffsA number is what we saw in the past. I think it’s a pretty common opinion about how it will play. I think that the big unanswered question is how rising inflation is, say, in 2026 or even longer. We need to make sure that any one-time change of prices does not pass more stable high inflation, “the Fed President stressed.

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Fox Business’ Suzanne O’halloran contributed to this report.

 
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