Fed's Williams (Voter) says with inflation running high, it is imperative Fed restore it to 2% goal on a sustained basis; current stance of policy is well positioned to do that

Inflation

• Inflation is unquestionably too high at about 4%.
• Expects overall inflation to decline to around 3.25% by year-end, continue toward the 2% goal in 2027 and land on target in 2028.
• Encouraging reasons to expect that inflation has peaked and should edge down in coming quarters.
• Medium- and longer-term inflation expectations remain well anchored.
• With inflation running high, it is imperative that it is restored to the 2% goal on a sustained basis.

Economy & Labour Market

• Labour market showing signs of resilience and stability.
• Growth in the economy is solid and on trend, and the labour market is likewise solid and stable.
• Expects real GDP growth to be around 2.0%-2.25% this year and over the next two years.
• Expects unemployment rate to edge down gradually to 4% in 2028.

Monetary Policy

• Current stance of monetary policy is well positioned.

Middle East

• While effects of Middle East conflict pose significant risks, the U.S. economy has so far absorbed these events fairly well.
• Supply disruptions stemming from the Middle East conflict continue to be a source of risk to the outlooks for both growth and inflation.

AI

• Full effects of the AI investment surge on growth, employment, and inflation are hard to predict.