Federal Reserve Williams: Inflation is expected to be 3% this year, returning to the 2% target in 2027

On May 5, Federal Reserve Williams said that inflation is expected to be 3% this year and return to the 2% target in 2027. The U.S. economic growth this year is expected to be between 2% and 2.25%. Unemployment is expected to remain around 4.25% to 4.50%. Tariffs and energy are the main drivers of inflation, and underlying inflation remains generally stable. The fact that inflation expectations are still under control is a positive sign.