Federal Reserve Bank of New York president John Williams said in a Bloomberg TV interview on Friday that the U.S. labour market has proved to be resilient, though he sees economic growth in 2025 to be significantly slower than in 2024, with higher inflation and unemployment. The official noted that actual consumer spending has held up pretty well, but there are growing reports of a pullback in discretionary spending.
Williams emphasised that, right now, monetary policy remains modestly restrictive and in a good place, giving the Fed time to assess developments. He stressed that tariff details matter and trade policies remain in flux, making it difficult to predict the Fed's next move. Should the economy weaken more than expected, he acknowledged that deeper rate cuts could be appropriate.