By Matt Grossman

John Williams, the president of the New York Fed, warned that newly implemented tariffs have lowered the U.S. growth outlook and raised his expectations for inflation and unemployment.

In a speech in Puerto Rico Friday, Williams said he expects:

-- Economic growth to slow to below 1%, from its 2.4% annualized pace in last year's fourth quarter.

-- Inflation of 3.5% to 4% ahead, compared with 2.5% in the latest reading from the Fed's preferred gauge.

-- Unemployment of 4.5% to 5%, up from 4.2% in March.

"Monetary policy is in the right place to manage those risks as best we can," Williams said.

The Fed has held its benchmark rate steady at 4.25% to 4.5% since December, and policymakers are scheduled to vote on their next move in early May.

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(END) Dow Jones Newswires

April 11, 2025 11:38 ET (15:38 GMT)

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