Federal Reserve officials are sticking with their pledge for patience on interest rates, shrugging off President Donald Trump’s escalating trade war and his pressure for a cut.
Bloomberg reported that New York Fed President John Williams and his Kansas City colleague Esther George, who vote on policy this year, acknowledged that new tariffs on Chinese imports could affect the outlook for U.S. inflation and growth. But both saw no need for the central bank to react.
“Policy is in the right place,” Williams said in a Bloomberg Television interview Tuesday in Zurich. “I don’t see any reason to have a bias up or downward in the current circumstances. We’re going to evaluate, assess, to see the best decision to get us to our goals.”
Fed officials held rates steady at their April 30-May 1 meeting and said they will be “patient” on judging the next move in policy after previously signaling they saw no need for a move all year.
“This wait-and-see approach is appropriate because we have not seen upward pressures building on inflation, even though we have experienced above trend growth and a further tightening of labor markets,” George told an audience in Minneapolis.
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