Fed official expects inflation to cool later this year
Philip Jefferson, the Federal Reserve vice chair, said in prepared remarks for a Tokyo speech that he expects inflation to cool later this year as the effects of tariffs and higher energy costs wear off, but he warned that inflationary risks remain tilted to the upside. Jefferson said he is watching whether higher energy costs tied to the Iran war are reducing consumer spending and noted signs of labor market weakness. He reiterated that the Fed's current policy stance is well positioned to respond after officials left the benchmark rate at 3.5% to 3.75%.
Fed says policy stance is well positioned to respond
Context
The Fed left its benchmark rate unchanged last month at 3.5% to 3.75%. Jefferson spoke…
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- Full ContextLocked
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- Economic IndicatorHeadline CPI expected to decelerate…Locked
- Investor RelevanceLocked
- Professional RelevanceLocked
- Watch PointsFed June 16–17 meeting statement, dot…Locked
- Probability of ChangeLocked
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- Follow-up QuestionsWill higher energy costs from the Iran…Locked
- Pros & ConsPolicymakers: can remain flexible…Locked