Fed's Williams says if inflation ebbs, further reductions in policy rate will eventually be warranted

Policy

• Eventual rate cuts are aimed at keeping policy from being too restrictive.
• Rate policy stance is currently 'well positioned'

Jobs

• Economy on solid footing, and the job market is stabilizing.
• Expects the unemployment rate to edge down this year and next.

Inflation

• Recent data on inflation has been reassuring.
• Tariffs are a key driver of inflation but that pressure should wane this year.
• So far there is no major second round impact from tariffs.
• Expects inflation to ease to 2.5% this year and 2% in 2027.

Growth

• Sees 2.5% GDP growth in 2026.