U.S. Fed Vice Chair Advocates Patience in Monetary Policy
U.S. Federal Reserve Vice Chair Philip Jefferson expressed satisfaction with maintaining the current policy rate until the net impact of recent policy changes under the Trump administration becomes clearer.
Jefferson acknowledged that the Fed's policy remains restrictive, despite a series of rate cuts in 2024, and emphasized the need to assess the combined effects of the administration's tariffs, immigration policies, deregulation, and tax measures.
"We can be patient and wait to see the net effect of any policy changes by the current administration," Jefferson said during a speech at Swarthmore College.
The Fed's current policy stance is exerting downward pressure on inflation, suggesting that the central bank remains cautious in its approach to rate adjustments. Jefferson's remarks indicate a willingness to delay further rate cuts until the full effects of recent policy shifts are understood.