Federal Reserve Bank of New York President John Williams said Thursday he sees lower risks to inflation as tariffs have driven up price pressures less than expected so far.

“I see on the margin...a reduction of some of the upside risks to inflation" from tariffs, joined with more clarity about the future of economic policy, Williams told reporters after a speech before the Economic Club of New York.

There are “definitely” impacts on price pressures from President Donald Trump’s import tax hikes, but in terms of tariff pass-throughs to higher inflation, “these effects seem to be at or below estimates of what that would be.”