The economy is solid, expect 2% inflation in 2025

New York Federal Reserve Bank (Fed) President John Williams opened up about his economic outlook on Thursday after a consumer price index (CPI) inflation print caused an overall increase in annual CPI inflation pressures on consumers. Initial weekly U.S. jobless claims also rose at the fastest pace of newly jobless claims since May 2023.

Key highlights

The job market is unlikely to be a driver of inflation going forward.

I see unemployment at 4.25% this year and around 2025.

I see 2024 GDP between 2.25-2.5%, an average of 2.25% over the next two years.

I expect inflation to ease to 2.25% this year, close to 2% in 2025.

The economy is solid, the job market in a good place.

Economic activity is largely balanced across the economy.

The latest data was consistent with recent trends.