Svmuu News: Federal Reserve’s Williams stated that inflation is undoubtedly still too high at around 4%, and that efforts must continue to bring it back down to the 2% target; the current monetary policy stance is appropriate for achieving 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 in 2028; Real GDP growth this year is projected to be between 2% and 2.25%, and is expected to remain at this level over the next two years, while the unemployment rate is projected to gradually decline to 4% by 2028.
He also noted that U.S. economic growth remains robust and the labor market has demonstrated resilience and stability, but supply disruptions caused by the conflict in the Middle East continue to pose risks to the 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. (Jin Shi)