MNI BRIEF: Fed's Jefferson-Need More Evidence Inflation Easing

Federal Reserve Vice Chair Philip Jefferson said Monday he would like more evidence inflation is resuming its decline back to 2% after stalling early this year before considering interest rate cuts.

"The decline in inflation has attenuated in the first quarter of this year and that for me is a source of concern," Jefferson told a conference sponsored by the Cleveland Fed. "It is appropriate that we maintain the policy rate in restrictive territory, which it is right now, and that we continued to look for additional evidence that inflation is going to return to our 2% target."

Jefferson said a strong labor market and economy allow him to focus even more intensely on the inflation side of the Fed's mandate. (See MNI POLICY: Stubborn Wage Growth Too High For Fed's Comfort)