MNI BRIEF: Williams Says Fed On Hold For Some Time

New York Fed President John Williams said Monday policy uncertainty emanating from Washington, D.C. puts upside risks on inflation and is starting to affect household and business behavior, but the economy is robustand the federal funds rate is well-placed to remain on hold for some time. 

"I would say it's still early days," said Williams about the potential impact from President Trump's tariff policies in an interview with Yahoo! Finance. "I think that the current level of the federal funds rate, the target range, is really well positioned."

"I feel like monetary policy is moderately restrictive. It is putting some downward pressure on inflation and I feel that keeping that stance for some time," Williams said. 

Williams said that his forecast is for inflation to be "relatively stable" this year. "But definitely there's upside risks depending a lot on the tariffs and and other policy policies that may take place." He said the economy is "very solid" and "in a very good place." Still, "the uncertainty itself, regardless of what the policies are, probably is affecting some household and business behaviors themselves."