John Williams, President of the Federal Reserve Bank of New York (Fed), said that monetary policy is well-positioned for any unusual circumstances. He told Reuters that the job market is still sending out mixed signals on Monday.

Key takeaways:

The baseline outlook for the economy has been good

There’s a lot of uncertainty, but the economy has been more resilient than expected

Monetary policy is well positioned for “unusual circumstances”.

Tariffs and Iran war will push headline inflation higher.

Job market sending out mixed signals.

Low hiring rate might be boosting economic pessimism.

No signs of second-round inflation impact from tariffs.

Economy has been resilient among changes.

Expects inflation to end this year at 2.75%, back to 2% in 2027.

Expects US GDP to be 2.5% this year amid help from various factors.

Inflation expectations consistent with 2% inflation.

War could both push up inflation and depress growth.

Expects higher headline inflation near term on war, tariffs.

Economy facing “unusual set of circumstances”.

Expects the unemployment rate to edge down this year and next.

Tariffs and the Iran war will push up headline inflation.

Uncertainty around inflation’s path is high.”