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

Odaily reported that Fed's Williams stated that current inflation is undoubtedly still too high, at around 4%, and it must be continuously driven down to the 2% target. The current monetary policy stance is appropriate for achieving this goal.

Williams expects overall inflation to drop to around 3.25% by the end of this year, continue to decline in 2027, and reach the 2% target by 2028. Real GDP growth this year is expected to be between 2% and 2.25%, and is projected to remain at this level over the next two years, with the unemployment rate gradually falling to 4% by 2028.

He also stated that U.S. economic growth is robust 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. Furthermore, the full impact of the surge in AI investment on growth, employment, and inflation is difficult to predict. (Jin Shi)