Fed: The neutral rate is probably low – John C. Williams

The president of the Federal Reserve (Fed) of New York, John Williams, told Fox Business on Thursday that monetary policy is “well positioned” and does not need adjustments at this time. He warned that the tariffs of US President Donald Trump will probably envive inflation, affect growth and increase unemployment, but he does not need to move the federal funds rate in the short term.

Outstanding comments

• The economy is in a very good place in the midst of uncertainty.
• Monetary policy is well positioned, it does not need to change rates in the short term.
• Monetary policy is in the right place.
• Tariffs will increase inflation this year and reduce growth.
• It is time to collect data and understand what is happening.
• It is really difficult to say what the Fed will do with the rates policy.
• Inflation expectations are important to observe at this time.
• Market assessment reflects uncertainty about prospects.
• My basic opinions on monetary policy have not changed fundamentally.
• The recent inflation has been good news, but it is still above the target.
• The key is to observe how commercial policies affect inflation.
• Tariffs will definitely impact inflation this year, it is not clear how long it will persist.
• The Fed needs to ensure that a specific prices change does not affect the long term.
• It is essential to keep inflation expectations anchored.
• I will not make a prediction on recessions.
• This year’s growth will probably be significantly slower, with an increase in unemployment.
• GDP will probably be below 1%this year, with an unemployment rate of up to 4.5%–5%.
• The neutral rate is probably low.
• The long -term federal fund rate is probably around 3%.