Williams projects inflation at 3.5% for 2026 before reaching the central bank's 2% target in 2028. He described achieving that target as imperative to prevent high inflation from becoming entrenched in the economy, adding that Fed policy is capable of ensuring that the impact of supply shocks remains short lived.
Tuesday, October 20, 2026
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Fed Williams Warns AI Investment Now Drives Inflation
US Markets21 days ago
U.S. gross domestic product will grow 2.25% this year and unemployment will average 4% throughout 2027, Federal Reserve official John Williams forecast. Williams stated that investment in artificial intelligence has become an increasingly prominent driver of inflation, even as new data indicates the technology is beginning to bolster productivity gains. He expects price pressures to ease since the most substantial economic shocks have largely played out.
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