Inflation message from Fed Vice Chairman Jefferson
US Federal Reserve (Fed) Vice Chairman Philip Jefferson said that inflation did not fall “as fast as he wanted”.
Fed Vice Chairman Philip Jefferson emphasized Monday that inflation is not cooling fast enough to warrant lowering interest rates.
The pace of price increases has “slowed significantly” since its peak in mid-2022, Jefferson said, adding that he supports the Federal Open Market Committee’s recent decision to keep rates steady.
“I believe our policy rate is in restrictive territory as we continue to see the labor market coming into better balance and inflation falling, although not as quickly as I would like,” Jefferson said in his speech in New York.
Jefferson said Fed economists have calculated that core inflation, measured by the central bank’s preferred personal consumption expenditures price index, will increase at an annual rate of 4.1% in the first four months of 2024, above the 2% target.