Philip Jefferson speaks during the confirmation of the Business Affairs, Housing and Urban Affairs Committee in the Senate in Washington, DC in the United States, on February 3, 2022. The US Senate voted on Wednesday with an overwhelming majority to confirm Philip Jefferson, an economic expert and dean of Davidson College at Davidson College, To the Federal Reserve.
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Eston, Pennsylvania – Federal Reserve Vice President of Philip Jefferson said on Tuesday that the central bank should be careful in how to adjust interest rates in an uncertain policy environment.
In broad terms, the Federal Reserve Governor said he sees that the economy is strong with inflation that belongs to the “rugged” road to the central bank's goal by 2 % and the labor market in a “strong situation”.
However, Jefferson repeated modern data from other officials that it is in the interest of the Federal Reserve to move slowly because it evaluates advanced conditions.
“As long as the economy and the labor market are still strong, I see that it is suitable for the (Federal Open Market) committee to be careful in making further amendments,” he said in statements to a letter at Lavaite College.
“In the medium term, I still see a gradual decrease in the level of monetary policy control over the economy and we are moving towards a more neutral position as a more likely result,” Jefferson added. “However, I don't think we need to be in a hurry to change our position.”
The notes come less than a week after the FOMC voice Keep the price of its policy fixed In the area between 4.25 % to 4.5 %, Jefferson's decision. At the previous three meetings, the committee reduced the rate of federal funds by 1 percentage point after walking quickly to combat an increase in inflation.
Federal reserve officials have declined directly to comment on the political clashes in Washington, but they expressed a level of fear of trying to prejudices.
The current level of uncertainty is the effect that the tariff negotiations between the United States and its main commercial partners will get. president Donald Trump Stop duties against products from Canada and MexicoBut closed in a tense battle with China.
“There is always a great deal of uncertainty about any economic expectations, and they are currently facing additional uncertainty about the exact form of government policies, as well as their economic effects,” Jefferson said.
During the past year, the preferred inflation scale in the Federal Reserve – Personal consumption expenses index – He decreased. The average increased by 2.6 % in December on an annual basis, which is still its peak but remains 2 % before the central bank's goal.
Jefferson said he expected inflation to continue to decline, but he sur heavy outlines.
“In the current environment, I attach a high degree of uncertainty with my expectations,” he said.
The policy maker added that “a set of scenarios can imagine for future policy” where we can “maintain policy control for a longer period” if inflation remains high, or can reduce the federal reserve more if the labor market is weak.
