Fed Vice Chairman Philip Jefferson said in a speech overnight that the central bank can “take our time” in assessing economic data before making any changes. With the U.S. economy performing well and the labor market remaining solid, Jefferson indicated that there is no immediate urgency to ease policy further.
He acknowledged that progress toward the Fed’s 2% inflation target “has been slow in the past year.” He added that the path of inflation will likely remain “bumpy”.
While the 100 basis points of cumulative rate cuts last year have moved policy closer to a neutral stance, he reiterated that monetary policy is still “restrictive”.
