Federal Reserve Vice Chair JEFFERSON said he expects to cool later this year
as the effects of tariffs and higher energy costs fade, but warned that inf
risks remain tilted to the upside. In the text of a speech planned for Thursday
morning in Tokyo at a conference hosted by the BANK OF JAPAN, JEFFERSON said he
is watching for signs that energy-cost increases caused by the Iran war are
weighing on consumer spending. He also warned he continues to see signs of
labor-market softness. JEFFERSON reiterated his view that the central bank’s
current policy stance is well positioned to respond to any developments. "I am
not making a prediction about the next meeting, and I look forward to discuss
with my colleagues the best policy needed to achieve our dual-mandate goals," he
said.
