Clarify the interest rate floor? New York Fed President: Anchoring inflation expectations is the "cornerstone" of central bank operations.

New York Fed President Williams said that anchoring inflation expectations near policymakers' target is the "cornerstone" of central bank work. In a speech draft prepared for a conference in Reykjavik, Williams pointed out that a "key lesson" for central bank officials is the importance of maintaining well-anchored inflation expectations, especially in times of high uncertainty. Williams' statement comes at a critical moment for the Federal Reserve as it faces the challenge of maintaining price stability and achieving full employment, which may conflict. According to the latest survey by the New York Fed, US consumers' medium-term inflation expectations sharply increased in April, while households' views on the labor market also turned pessimistic. At the same time, President Trump continues to pressure policymakers to cut interest rates to offset the negative impact of tariff policies on the economy and labor market. Williams' remarks indicate his particular focus on the Fed's inflation management responsibilities. This is in line with recent statements by Fed Chair Powell, who emphasized that sustainable full employment is difficult to achieve without price stability. Williams said: "Today, regardless of economic shocks, changes in government policies, or fluctuations between globalization and de-globalization, central banks recognize that maintaining price stability is their responsibility: they are the guardians of price stability." He added that by effectively fulfilling their mission, "central banks have earned the trust of the public". Despite rising unemployment and increasing inflation risks, Fed officials decided this week to keep the benchmark interest rate unchanged. Policymakers are waiting for more definitive data to assess the actual impact of large-scale tariff measures on the economy. Williams said: "Undoubtedly, uncertainty will continue to be a determining feature of the monetary policy landscape in the foreseeable future." The Trump administration is set to engage in a new round of trade negotiations with Chinese representatives this weekend, with analysts hoping this could be the first step in reducing tariffs for both sides. In mid-April, Williams warned that policymakers need to ensure that a one-time inflation surge triggered by tariffs does not evolve into a more persistent inflation problem.