The Federal Reserve (FED) Williams: Economic growth is expected to slow down, and the current moderately tight monetary policy is entirely appropriate.

Speaking on the economic outlook and monetary policy on April 11, New York Fed President Williams, a permanent member of the FOMC, said, "Tariffs are expected to drive up inflation and dampen economic growth, and the Fed's monetary policy stance is in the best position to manage these risks to the best of our ability." In times of uncertainty, consumers may postpone making big decisions, such as buying a home or car, and businesses may postpone investments until they have a better understanding of the future. When households and businesses cut back on spending, economic growth slows. With February data showing that inflation is still above target, the Fed is right to keep interest rates at a level that modestly dampens the economy. The current moderately tight monetary policy stance is entirely appropriate. In times of turbulence and uncertainty, good long-term inflation expectations are essential to ensure continued price stability. Maintaining inflation expectations is critical as we pursue our maximum employment target and the long-term target of returning inflation to 2%." ( gold ten )