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 must be continuously pushed down to the 2% target. The current monetary policy stance is appropriate to achieve this goal.

Williams expects overall inflation to fall 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 is expected to be 2% to 2.25% this year and to remain at this level for the next two years, while the unemployment rate is expected to gradually fall to 4% by 2028.

He also noted that U.S. economic growth is solid, and the labor market shows resilience and stability. However, supply disruptions from 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. (Jinshi)