Fed’s Williams: No urgency for rate change, expects sub-1% growth without recession

In an interview with Fox Business New York Fed President John Williams said monetary policy is “well positioned”. “I don’t see any need to change the setting of the fed funds rate anytime soon,” he added.

He expected US growth to dip below 1% this year, accompanied by a rise in the unemployment rate to between 4.5% and 5%, as the impact of President Trump’s import tax hikes filters through the economy.

Williams emphasized that this slower pace of expansion should not be mistaken for a recession. “That’s just a slower outlook, slower growth than you’ve seen in the past couple years,” he noted.

He stressed the importance of ensuring that these one-off cost increases from tariffs do not become embedded in broader inflation trends.