New York Fed’s Williams says tariff burden falls ‘overwhelmingly’ on the U.S.
CNBC: New York Fed President John Williams states that American consumers and businesses are bearing the brunt of President Trump’s tariffs.
In a recent speech, New York Federal Reserve President John Williams highlighted that the majority of the impact from President Trump’s tariffs has been felt by U.S. firms and consumers. This contradicts White House claims that exporters would absorb the costs. Williams also mentioned that the tariffs have hindered the Fed’s ability to reach its 2% inflation target, with around one half to three quarters of the current 3% inflation rate being attributed to the tariffs. Despite this, Williams remains optimistic that the tariff impact on inflation will be temporary and expects the Fed to hit its target by 2027. Market expectations suggest that the Fed may resume cutting rates later this year, possibly in July or September.
