Federal Reserve Bank of New York President John C. Williams visited UB on Tuesday (Sept. 29)  as part of a multiday visit to Western New York. In the morning, Williams met with UB President Caroline Attardo Genco, PhD, and other leaders from across the university to learn about new initiatives at UB and its role in the local economy.

Over lunch, six School of Management students and six students from the Economics Department in the College of Arts and Sciences were given a rare opportunity to talk with Williams about anything they wanted, from career growth to technical economics questions.

Williams then attended a roundtable organized by the School of Management’s Center for Entrepreneurial Leadership and its Center for Supply Chain Analytics. A dozen participants representing the centers, area businesses, the Small Business Administration and Invest Buffalo Niagara discussed the local economic environment.

Next, it was off to the Student Union Theater and an audience of more than 200 students, faculty and staff for Williams. After an introduction by Ananth Iyer, dean of the School of Management, Williams delivered remarks on the economic outlook and monetary policy, highlighting several major points:Williams said the economy is holding up well overall, but inflation is still the Fed’s biggest concern. He described the U.S. economy and labor market as solid, with low layoffs and continued growth. But inflation remains above the Fed’s 2% target, driven recently by energy prices, geopolitical disruptions and AI-related demand. That is why the Fed is keeping monetary policy focused on restoring price stability.

• Williams said the economy is holding up well overall, but inflation is still the Fed’s biggest concern. He described the U.S. economy and labor market as solid, with low layoffs and continued growth. But inflation remains above the Fed’s 2% target, driven recently by energy prices, geopolitical disruptions and AI-related demand. That is why the Fed is keeping monetary policy focused on restoring price stability.
  
  AI is already affecting the economy, according to Williams, and its biggest impact may still be ahead. He sees AI as a major general-purpose technology that could significantly boost productivity and reshape the skills employers need. In the near term, AI is driving investment, stock market gains and demand for data centers and equipment. Over the longer term, he expects it to change how people work rather than simply eliminate jobs.
  
  
• Strong economic statistics do not tell the whole story, especially in Western New York, Williams cautioned. He said his conversations in Buffalo and Jamestown highlighted a “K-shaped economy” where higher-income households have benefited from strong housing and stock markets, while many families are still struggling with affordability, child care and limited savings. At the same time, he sees opportunity for Western New York to benefit from major technology and manufacturing investments if local businesses and workers can connect to that growth.

Following remarks by Williams, Yun Pei, associate professor of economics at UB, conducted a question-and-answer session, and then the audience was invited to ask questions as well. Jeff Gabrill, dean of UB’s College of Arts and Sciences, gave closing remarks.