Fed's Williams: We're beginning to factor in tariff impact on prices

Federal Reserve (Fed) Bank of New York President John Williams spoke at the Bloomberg Invest Forum in New York on Tuesday, highlighting that although inflation pressures have eased and the US labor market appears strong, the Fed will have to take a close look at the fallout from the US tariff actions.

Key highlights

Details of tariffs are key to understand.

There's still a lot of uncertainty how tariffs will play out.

We will see some impact on inflation from tariffs.

Tariffs can also impact sentiment and weigh on growth.

We're beginning to factor in tariff impact on prices.

I have somewhat higher prices in outlook.

The US economy is in a good place, and the labor market has stabilized.

Infaltion has been gradually easing.

Monetary policy is in good position and we can adjust as needed.

I don't see need to change rate policy right now.

I expect growth to slow from last year's pace.

I'm watching inflation expectations very closely.

Worth watching University of Michigan inflation expectations data.

NY Fed data thus far has shown more stable inflation expectations.

Talk of tariffs impacting how people are thinking about near term inflation.

It's hard to have an economic outlook base case; it's more about scenarios.

It's really hard to know what Fed will do with rates this year.

Fed balance sheet strategy has not changed.

Fed Minutes on balance sheet did not change ultimate goals.

Previous Fed framework influenced by low inflation.