Economic Growth and Inflation Outlook

Federal Reserve Bank of New York President John Williams addressed the Connecticut Business and Industry Association (CBIA) Economic Summit and Outlook 2025, emphasizing a data-driven approach to monetary policy amidst an uncertain economic landscape. Williams pointed to potential fiscal, trade, immigration, and regulatory policies as key uncertainties affecting the economic outlook.

Projected Economic Indicators

Williams projected a slowdown in real GDP growth to around 2 percent for the year, attributing part of this deceleration to lower immigration rates. He anticipates the unemployment rate will hover between 4 to 4-1/4 percent. Looking forward, Williams expects inflation to gradually decline towards the Fed's 2 percent target in the coming years, though he acknowledged the process might be uneven and time-consuming.

Monetary Policy Resilience

Despite the challenges, Williams expressed confidence in the resilience of the current monetary policy to navigate through the uncertainties and risks. He underscored the importance of patience and adaptability in achieving the desired economic outcomes.