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

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

Williams expects overall inflation to decline to about 3.25% by the end of this year, continue to fall in 2027, and reach the 2% target in 2028; this year's real GDP growth is forecast to be between 2% and 2.25%, maintaining this level for the next two years, while the unemployment rate is projected to gradually decrease to 4% by 2028.

He also stated that the U.S. economy is growing steadily, and the labor market is showing resilience and stability. However, supply disruptions caused by the Middle East conflict still pose risks to economic growth and the inflation outlook. The full impact of the surge in artificial intelligence investment on growth, employment, and inflation is also difficult to predict. (Jin Shi)