According to a report by Jinshi Data, Federal Reserve's Williams stated that he is unwilling to support interest rate cuts before this month's FOMC meeting, as tariffs may push up inflation. He pointed out that the new trade barriers from the Trump administration have increased the costs of consumer goods, and prices are expected to continue rising in the future.
Williams mentioned that the price increases for goods such as household appliances, musical instruments, and luggage exceeded expectations. He believes that considering the risk of accelerating inflation in 2025, the Federal Reserve should take a cautious stance on lowering the benchmark interest rate and maintain a moderately restrictive monetary policy stance.
Williams expects that by the end of 2025, the unemployment rate will rise to 4.5%, the inflation rate will reach 3.5%, and this year's economic growth rate will be around 1%, significantly slowing down compared to last year.
