MNI BRIEF: Fed’s Jefferson-Taking Decisions Meeting By Meeting
Fed Vice Chair says watching incoming data carefully.
Risks to the Federal Reserve's employment and inflation goals are now roughly in balance, Fed Vice Chair Philip Jefferson repeated Wednesday, adding that decisions about interest rates will be made meeting-by-meeting.
"Looking ahead, I will carefully watch incoming data, the evolving outlook, and the balance of risks when considering additional adjustments to the federal funds target range," he said in prepared remarks. "My approach to monetary policymaking is to make decisions meeting by meeting. As the economy evolves, I will continue to update my thinking about policy to best promote maximum employment and price stability." (See: MNI: Job Boom Means Slower Fed Cuts, Pause Possible - Ex-Staff)
"Inflation is now much closer to the FOMC’s 2% objective" and "we will continue to make progress toward that goal," he told the Charlotte Economics Club. Risks to inflation have diminished and risks to employment have risen and are now roughly in balance, he said. The unemployment rate now stands at 4.1%, up from 3.8% in September 2023. "The good news is that the rise in unemployment has been limited and gradual, and the level of unemployment remains historically low. Even so, the cooling in the labor market is noticeable."