Williams: There are encouraging reasons to believe that inflation has peaked, and overall inflation rate is expected to drop to around 3.25% by the end of the year.

The Middle East conflict remains a risk facing the outlook. The imbalance between AI supply and demand should ease over time. There are encouraging reasons to believe that inflation has peaked. Medium- and long-term inflation expectations are firmly anchored. U.S. economic growth is robust and in line with trends. The labor market shows signs of resilience and stability. The Federal Reserve's monetary policy is well positioned to help reduce inflation. Tariffs should not become a new source of price shocks in the future. Housing inflation is expected to remain on a downward path. It is anticipated that the overall inflation rate will fall to around 3.25% by the end of the year.