Fed's Jefferson: Rates to Continue Lowering 'Over the Medium Term'
Federal Reserve Vice Chair Philip Jefferson affirmed the central bank's stance that interest rate cuts will continue at least "over the medium term."
In a speech at Lafayette College, Jefferson emphasized the economy's positive outlook, with inflation declining and economic growth and labor market conditions remaining strong.
"Over the medium term, I continue to see a gradual reduction in monetary policy restraint," Jefferson said, noting the likelihood of a more neutral stance.
However, he stressed caution in further adjustments, citing strong economic and labor market conditions.
Jefferson highlighted uncertainties surrounding government policies and their economic impact.
Despite inflation remaining above the Fed's 2% target, policymakers believe price pressures are easing.
Investors anticipate a quarter-point rate cut in June and December, aligning with the Fed's gradual approach to rate adjustments.