Fed Gov. Philip Jefferson
- Current moderately restrictive policy rate in a good place to respond to economic developments
- Watching closely for signs in hard data of weaker activity
- Recent inflation data consistent with further progress toward 2% goal, but future path uncertainty due to tariffs
- Tariffs could lead to higher inflation
- Labor market still solid
- Q1 GDP data overstated deceleration in activity
- Whether tariffs create persistent inflation depends on implementation, response of supply chains and other factors
There is a remarkable unity in this thinking at the Fed.
