April 16, 2024 13:11 GMT
Jefferson Sees Holding Rates Steady
FED
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Vice Chair Jefferson (voter) says in prepared remarks his baseline is for the policy rate to be held steady at its current level:
- “My baseline outlook continues to be that inflation will decline further, with the policy rate held steady at its current level, and that the labor market will remain strong, with labor demand and supply continuing to rebalance.”
- “If incoming data suggest that inflation is more persistent than I currently expect it to be, it will be appropriate to hold in place the current restrictive stance of policy for longer.”
- The comments helped 2Y Tsy yields push to new session highs of 4.957% in a reversal of spillover from soft Canadian CPI, but it remains below yesterday’s fresh YTD high of 4.993%.
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