John Williams, president of the Federal Reserve Bank of New York, warned in his latest economic outlook speech that the fight against inflation may become more challenging than expected, according to his remarks. Williams announced an inflation forecast of 3 percent for 2026, with price increases expected to slow to 2 percent in 2027—a more upward trajectory compared to his earlier assessment of 2.75–3 percent.
Inflation Forecast Revision
Williams’ updated forecast reflects a shift in economic expectations. The revised 3 percent estimate for 2026 represents an increase from his previous range, indicating a slower-than-initially-anticipated decline in price pressures.
Tariff Policy Reassessment
Williams also signaled a notable change in his assessment of trade policy impacts. In April, he had stated that the impact of tariffs would diminish over time and put downward pressure on core inflation. However, in his latest assessment, Williams acknowledged that while the price impact of current tariffs will largely be completed in the coming months, a new wave of tariffs could be introduced, creating additional upward pressure on import prices.
Artificial Intelligence and Interest Rates
Williams addressed the economic effects of artificial intelligence technologies, stating that AI could increase productivity and investment, which could push the “neutral interest rate” higher in the economy. He assessed this rate to be around 1 percent currently, noting a “struggle” between the downward pressure of demographic factors and the upward impact of AI and increased productivity.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
U.S. March Trade Deficit Comes in at $60.3 Billion, Slightly Better Than Expected
According to data from Golden Ten, the U.S. trade deficit for March came in at -$60.3 billion on May 5, slightly better than the expected -$60.9 billion deficit. The prior month's deficit was revised upward to -$57.8 billion from -$57.3 billion. Following the data release, spot gold and the U.S.
GateNews40m ago
Banks Scrap Fed Rate-Cut Forecasts on May 5, Bitcoin Remains Unaffected
On May 5, multiple banks withdrew their forecasts for Federal Reserve interest rate cuts, yet Bitcoin remained unaffected by the shift in monetary policy expectations.
GateNews1h ago
UK 30-Year Gilt Yields Hit 5.76%, Highest Since 1998
According to Jin Shi, UK 30-year gilt yields rose to 5.76%, marking the highest level since 1998.
GateNews1h ago
South Korea Pushes Won Stablecoin After $115B Move to Dollar-Backed Tokens
South Korea is pushing a won-pegged stablecoin after $115B flowed into dollar-backed tokens, raising FX and policy concerns.
The Bank of Korea favors a bank-led rollout with strict oversight, warning of risks to monetary stability and reporting compliance.
Competing KRW stablecoin
CryptoFrontNews4h ago
Turkey Maintains 37% Rate Despite 32% Inflation, Trade Deficit
Turkey's central bank maintained its tight monetary policy in April 2026 despite persistent inflation and slowing economic activity, keeping its main interest rate at 37 percent to defend the lira and restrict credit, according to the bank's latest policy decision.
The central bank has limited lira
CryptoFrontier8h ago
Reserve Bank of Australia Raises Rates by 25 Basis Points to 4.35% Today
The Reserve Bank of Australia raised its official cash rate from 4.10% to 4.35% on May 5, marking a 25 basis point increase.
GateNews8h ago
