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Federal Reserve Bank of New York President John C. Williams discusses the local and national economy at an event in Newburgh on Thursday.<\/p>\n
Roger Hannigan Gilson\/Times Union<\/p>\n
NEWBURGH\u00a0\u2014 One of the country\u2019s most prominent financial policymakers visited Orange County on Thursday for a discussion on the national economy and the Hudson Valley\u2019s economic challenges.<\/p>\n
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John C. Williams, president of the New York Federal Reserve, spoke about housing shortages, affordability pressures, demographic change and artificial intelligence during a wide-ranging discussion with Adam Bosch, outgoing executive director of the think tank Hudson Valley Pattern for Progress, in front of local officials and business leaders. The event was part of a daylong visit that also included a stop at Legoland New York in Goshen, focused on tourism.<\/p>\n
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Williams leads one of 12 regional Federal Reserve banks that, along with the Washington-based Board of Governors, form the Federal Reserve System. The New York Fed covers New York state, 12 northern New Jersey counties, Fairfield County in Connecticut, Puerto Rico and the U.S. Virgin Islands.<\/p>\n
In remarks during the discussion and in an interview with the Times Union, Williams described the national economy as showing \u201cremarkable resilience.\u201d He said inflation had been easing before \u201cbeing interrupted\u201d by tariffs and rising energy prices, but pointed to steady GDP growth and a strong labor market. The GDP grew 2%<\/a> in the first quarter of 2026. Inflation reached 3.3% in March, up from 2.4% in February, largely driven by rising energy costs, according to the U.S. Bureau of Labor Statistics<\/a>.<\/p>\n A consistent theme in his conversations across Orange County, Williams said, was the high cost of housing. The Hudson Valley\u2019s housing market surged during the pandemic<\/a> as remote work prompted an influx of new residents, fueling bidding wars and tightening rental supply<\/a>. By 2025, a single full-time worker earning average wages could not afford a one-bedroom apartment in any county<\/a> in the region without spending more than 30% of their income.<\/p>\n Make the Times Union a Preferred Source on Google to see more of our journalism when you search.<\/p>\n <\/p>\n Add Preferred Source<\/p>\n <\/a><\/p>\n Williams said the problem was fundamentally about supply, with New York facing particular constraints, including permitting and local approvals.<\/p>\n Article continues below this ad<\/p>\n \u201cYou definitely hear it\u2019s a challenging process\u00a0\u2014 it takes a long time in terms of getting those approvals,\u201d he said. \u201cSo when you hear the red tape arguments, I think that\u2019s true in the New York area.\u201d<\/p>\n He also pointed to NIMBYism\u00a0\u2014 \u201cnot in my backyard\u201d opposition\u00a0\u2014 as a barrier to new housing development. Asked whether local control over permitting should be reduced, Williams declined to weigh in.<\/p>\n Williams also addressed demographic shifts in the Hudson Valley. At least 50 schools in the nine-county region have closed since 1999<\/a> due to population changes. Columbia County is the second-oldest county in the state<\/a>, with a mean age of 50.4 years.<\/p>\n The Fed president said Americans are living longer and healthier lives, and more people are choosing to work past the traditional retirement age of 65, which could help support labor force growth.<\/p>\n Article continues below this ad<\/p>\n Responding to an audience question about the national debt\u00a0\u2014 now larger than GDP\u00a0\u2014 Williams said it is not currently disrupting financial markets. He noted that U.S. Treasury securities remain in strong demand and are widely trusted. And while he said long-term deficits will eventually need to be addressed, he added that doing so \u201ctakes political will\u201d and described the debt as \u201cnot an immediate issue.\u201d<\/p>\n Asked by a Times Union reporter about artificial intelligence and its impact on jobs, Williams said the long-term effects remain uncertain. While AI is likely to automate lower-level tasks and serve as an \u201cequalizer\u201d by allowing more people to write code without advanced technical training, Williams suggested it could also reshape education and labor demand, potentially elevating liberal arts, more skilled trades and \u201csoft skills\u201d like communication and leadership as automation expands.<\/p>\n