FOMC Gov. Jefferson is speaking and says:
- The impact of tariffs on the Fed's mandate is top of mind.
- The risks to the Fed's mandates depends on policy choices by the administration that have not been made.
- There are risks to both jobs and inflation, but given uncertainty it is appropriate to wait and see on right decisions
- The US could face a one-time increase in the price level tariffs, need to be sure that does not become a sustained increase in inflation.
- Will keep policy in place to be sure inflation expectations remain anchored
- So far the labor market has been very resilient.
- It is too early to tell how the labor market will be affected by administration policies
- There are no active conversations about changing the ample reserve operations framework
- Asked about the Moody's downgrade, says that is trying to fulfill its price and jobs mandate.
- The downgrade will be treated the same as other incoming data, with focus on implications for jobs and inflation.
