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business13h ago
New York Fed's Williams says tariff burden falls 'overwhelmingly' on U.S. businesses and consumers
- New York Fed President John Williams said tariffs have overwhelmingly been borne domestically by U.S. firms and consumers.
- Williams said tariffs have already increased U.S. prices of imported goods and may delay the Fed’s 2% inflation goal.
- The white paper cited by Williams suggested up to 90% of added tariff costs are passed to domestic buyers.
- Williams projected the tariff impact on inflation to be temporary and sees the Fed meeting its 2% target by 2027 if tariffs fade.
- Williams said the economy appears to be on solid footing and policy is well positioned to achieve its dual mandate.
- Market futures priced in potential rate cuts later this year, per Williams' remarks and market expectations.
- Williams emphasized the tariffs have not only affected prices but also hindered inflation progress toward the 2% goal.
- The remarks were delivered at a conference in Washington, D.C., and circulated amid White House critiques of the research.
- New York Fed researchers questioned the export burden claims and faced pushback from White House officials.
- The discussion centers on who ultimately bears tariff costs—the domestic economy or exporters abroad.
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