Fed's Jefferson: Cautiously optimistic about inflation progress, likely due for a rate cut later this year
|Federal Reserve (Fed) Vice Chair of the Board of Governors Phillip Jefferson spoke at the Peterson Institute for International Economics in Washington, DC Thursday.
Key highlights
Labor imbalance between demand and supply has narrowed.
Continuing strength in spending is an upside risk to forecasts.
Fed needs to remain vigilant, nimble.
Fed shouldn't be taken by surprise by any unexpected shocks.
Fed's Jefferson remains cautiously optimistic about progress on inflation.
According to Fed staff estimates, Personal Consumption Expenditure (PCE) Price Index rose 2.4% over the 12 months ended in January.
Fed's Jefferson expects services inflation to moderate as labor market cools.
It will likely be appropriate to begin cutting policy rates later this year.
The Fed wants to move in a way that would not lead to stops and starts in policy, doesn't want to increase policy uncertainty.
Fed's Jefferson: will be looking at the totality of data when weighing rate cut options, not a single indicator.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.