New York Fed President: Tariffs are expected to raise prices, no need to adjust monetary policy immediately.

New York Federal Reserve President Williams said on Tuesday that he has taken into account President Trump's tariff policies when forecasting the economy, and predicts that prices will rise in the near future. Williams stated that he has been waiting to see if Trump would fulfill his tariff promises. On Tuesday, Trump officially announced a 25% tariff on goods from Mexico and Canada, and an additional 10% tariff on Chinese goods. "I have now incorporated some of the tariff impacts into my forecasts for inflation and prices, as I believe we will see these impacts later this year, although they have not yet materialized." He pointed out that levying tariffs on consumer goods will directly affect import prices, and the rise in import prices will ultimately be passed on to consumers, and this impact occurs "relatively quickly." Furthermore, Williams also mentioned that the impact of tariffs on intermediate goods (raw materials and components used by companies to produce other products) typically takes longer to manifest and may continue to be visible over a longer period of time. "Based on past experience, we see the transmission effects of tariffs to be quite significant." He also stated that he is assessing how these tariffs will affect overall economic activity through business investment decisions and consumer spending intentions. "I think this is another major uncertainty." He pointed out that economic data in the past few months has shown some fluctuations, possibly related to market expectations regarding tariff policies. However, Williams stated that it is still difficult to accurately predict the ultimate impact of these changes, but he will closely monitor how tariffs affect consumer and business confidence. When asked about the potential impact of tariffs on inflation levels, Williams said that although tariffs may push up prices, he still believes that the current monetary policy is in a "very good state." "The current monetary policy remains somewhat restrictive, but it is helping to maintain a benign economic balance." Williams said, "I don't think there is an immediate need to adjust policy."