The Federal Reserve (FED) officials warn of inflation risks as economic growth slows.

According to the Gate.io News bot, Bloomberg reports that St. Louis Fed President Alberto Musalem pointed out the short-term risks of rising inflation coexisting with a weak labor market, urging policymakers to remain vigilant. He emphasized that the inflationary effects of tariffs are persistent, while overall financial conditions are tightening, including a fall in the stock market and widening credit spreads. He suggested closely following the data and conducting a comprehensive assessment of the employment and inflation outlook.

John Williams, the president of the New York Federal Reserve, pointed out that the U.S. economic growth is slowing down against the backdrop of tariff policies and reduced immigration. He predicts that real GDP growth will fall below 1%, and the unemployment rate will rise to between 4.5% and 5% over the next year, with the inflation rate rising to between 3.5% and 4%. Williams added that there has been a significant decline in consumer and business confidence, which is related to the Trump administration’s adjustments to trade policy.