Fed’s Williams Says Inflation Risks Lower as Tariff Effect Muted

Federal Reserve Bank of New York President John Williams said inflation risks have receded, while those for employment have moved up.

There’s been a “kind of re-balancing of the risks, from one where inflation was the big risk to one where employment and inflation — the risks to them — have moved closer together,” Williams said Monday during a question-and-answer session in Rochester, New York. “It made sense to move interest rates down a little bit to take a little bit of the restrictiveness out of there.”

Federal Reserve Bank of New York President John Williams.

Photographer: David Dee Delgado/Bloomberg

Fed policymakers voted to lower the central bank’s benchmark interest rate earlier ...