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

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

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

He also noted that U.S. economic growth is robust and the labor market shows resilience and stability. However, supply disruptions stemming from the Middle East conflict still pose risks to economic growth and inflation outlook, and the full impact of the surge in artificial intelligence investment on growth, employment, and inflation remains difficult to predict. (Jinshi Data)