1843 ET - New York Fed President John Williams says the central bank needs to be focused on inflation expectations being well anchored to evaluate the effect supply shocks have on the economy. Williams says that in 2022 it was the "perfect storm" of a tight labor market, a big energy shock and supply chain disruptions. Tariffs may have boosted inflation by three quarters of a percentage point, with a labor market that isn't adding to inflationary pressures, he says. "If anything the oil price shock is probably going to reduce demand in the economy," Williams says. "We're still in the middle of understanding the tariff effects, and now we have an additional layer that we need to be focused on." (jessica.coacci@wsj.com)

(END) Dow Jones Newswires

New York Fed President John Williams says the central bank needs to be focused on inflation expectations being well anchored. The headline of an item published at 6:43 p.m. ET on March 30 left off the word expectations.

(END) Dow Jones Newswires

March 31, 2026 11:14 ET (15:14 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.