Fed's Williams said inflation remains elevated and the Fed must ensure a
sustained decline to the 2.0% target, while current monetary policy is
appropriately set. He sees signs inflation may have peaked and expects it to
fall gradually over the next few quarters to about 3.25% by year-end, then move
toward 2.0%, reaching the target by 2028. Williams projects real GDP growth
around 2.0–2.25% this year and over the next two years, and expects the
unemployment rate to edge down to roughly 4.0%, noting the labor market is
resilient and stable.
