Fed's Williams: Inflation Still Too High, Expected to Fall to 2% Target by 2028

Odaily reported that Fed's Williams stated current inflation is undoubtedly still too high at around 4%, and efforts must continue to bring it down to the 2% target, with the current monetary policy stance being appropriate to achieve this goal.

Williams expects overall inflation to decline to about 3.25% by the end of this year, continue to fall through 2027, and reach the 2% target in 2028; real GDP growth is projected at 2% to 2.25% this year, remaining at this level over the next two years, while the unemployment rate is expected to gradually drop to 4% by 2028.

He also noted that the U.S. economy is growing steadily, the labor market is showing resilience and stability, but supply disruptions caused by the Middle East conflict still pose risks to economic growth and the inflation outlook. Additionally, the full impact of the surge in AI investment on growth, employment, and inflation is difficult to predict. (Jinshi)