Fed's Williams says trade policy will increase economic risks

By Michael S. Derby

May 9 (Reuters) - Federal Reserve Bank of New York President John Williams said Friday that U.S. trade policy is increasing downside risks to the economy.

“Clearly with where the direction of tariffs and trade policy is going, that is going to add to risks” of slower growth, higher unemployment and “somewhat higher” inflation, Williams said after a speech in Iceland. “My own view” is that growth will likely be “considerably slower” this year relative to last year with unemployment rising, the official said.