Fed’s Jefferson: Upside risks to inflation have likely declined
Federal Reserve (Fed) Governor Philip Jefferson spoke on Monday about the economic outlook and monetary policy at an event hosted by the Federal Reserve Bank of Kansas City. He said that they need to proceed slowly as monetary policy approaches the neutral rate.
Key takeaways
Need to proceed slowly as monetary policy approaches the neutral rate.
Still not clear how much government data will be available for the next US central bank meeting.
Current fed policy rate still somewhat restrictive.
Balance of risks has shifted in recent months, with increased potential downside to employment.
Upside risks to inflation have likely declined somewhat, with tariff effects likely temporary.
Available information seems consistent with gradual cooling to both labor supply and demand.
Anecdotal reports about the job market have been mixed; some firms have slowed hiring or cut Back, others are adding employees and investing.”
Source : Fxstreet.com
