Federal Reserve official John Williams said inflation in the United States remains too high at about 4% and still needs to move back to the central bank’s 2% target. He said the current stance of monetary policy is appropriate for achieving that goal.
Williams expects headline inflation to fall to about 3.25% by the end of this year, continue easing in 2027, and reach 2% in 2028. He also said real GDP growth is projected at 2% to 2.25% this year and is expected to stay around that level over the following two years. The unemployment rate, in his view, will gradually decline to 4% by 2028.
He added that the U.S. economy is growing at a solid pace and that the labor market has shown resilience and stability. At the same time, he warned that supply disruptions tied to the Middle East conflict still pose risks to growth and the inflation outlook. Williams also said the full effects of surging investment in artificial intelligence on growth, employment, and inflation remain difficult to predict.
Federal Reserve official John Williams said inflation in the United States is still “without question” too high at about 4%, and that it must continue moving back toward the Fed’s 2% target. He said the current stance of monetary policy is appropriate for achieving that objective.
Williams said headline inflation is expected to fall to about 3.25% by the end of this year, continue to ease in 2027, and reach the 2% target in 2028. He also projected real GDP growth of 2% to 2.25% this year, with growth holding around that level over the next two years. The unemployment rate is expected to gradually decline to 4% by 2028.
He added that U.S. economic growth remains solid and that the labor market has shown resilience and stability. Still, supply disruptions triggered by the Middle East conflict continue to pose risks to both economic growth and the inflation outlook. Williams also said the full impact of surging investment in artificial intelligence on growth, employment, and inflation is still difficult to predict.
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