12:52 PM EDT, 06/24/2025 (MT Newswires) -- The restrictive stance of monetary policy allows the Federal Open Market Committee to take its time to navigate the uncertainty presented by a tariffs and reduced immigration, New York Federal Reserve President John Williams said Tuesday at the NY CREATES Albany NanoTech Complex.

"Maintaining this modestly restrictive stance of monetary policy is entirely appropriate to achieve our maximum employment and price stability goals," Williams said. "It allows for time to closely analyze incoming data, assess the evolving outlook, and evaluate the balance of risks to achieving our dual mandate goals."

Williams said that he expects tariffs to reduce spending and labor force growth due to reduced immigration, resulting in slower GDP growth in 2025 compared with the previous year, for inflation to rise to around 3% and for the unemployment rate to increase to near 4.5% from the current 4.2% rate.

"Much of the soft data we've seen in recent months captures the heightened uncertainty about the path of the economy," Williams said. "But it's too early to say what the future trajectory of the hard data will be."