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