Free Trial

MNI: Fed's Jefferson Sees Rate Cuts Likely Later This Year

(MNI) WASHINGTON

Inflation progress has been good but there are two-sided risks, Vice Chair Philip Jefferson says.

The Federal Reserve will likely begin lowering interest rates later this year but officials must beware of both the risk of excessive easing and of unexpected weakening in the economy, Fed Vice Chair Philip Jefferson said Thursday.

"If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back our policy restraint later this year," Jefferson said in remarks prepared for the Peterson Institute for International Economics. There has been some welcome progress on inflation so far but policymakers must remain nimble and vigilant to fresh shocks, he said.

Keep reading...Show less
392 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The Federal Reserve will likely begin lowering interest rates later this year but officials must beware of both the risk of excessive easing and of unexpected weakening in the economy, Fed Vice Chair Philip Jefferson said Thursday.

"If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back our policy restraint later this year," Jefferson said in remarks prepared for the Peterson Institute for International Economics. There has been some welcome progress on inflation so far but policymakers must remain nimble and vigilant to fresh shocks, he said.

Keep reading...Show less