Fed's Williams says tariffs upended inflation's ebbing to 2% target

By Michael S. Derby

NEW YORK, July 16 (Reuters) - Federal Reserve Bank of New York President John Williams said on Wednesday that if not for the Trump administration's trade tariffs, inflation would be moving toward the Fed's target.

"If we abstract right now from the tariff effect, we would see, broadly, inflation moving closer to the 2% goal," Williams said in a speech before a New York economist group that said the full impact of higher import taxes is yet to be felt and will lead to higher inflation this year.