Fed’s Jefferson signals patience as next rate move stays data-driven
Vice Chairman of the Federal Reserve (Fed) Philip Jefferson said on Thursday that the Fed "is fully committed to returning inflation to 2% target” and that future interest rate decisions “should be driven by data.”
Vice Chairman of the Federal Reserve Philip Jefferson has expressed the Federal Reserve's commitment to bringing inflation down to its 2% target. He reiterated that future interest rate decisions should be based on data, and the Fed may take more time to decide the next rate move, similar to comments made by New York Fed President John Williams on Wednesday.
The Fed is not in a rush to tighten monetary policy. The central bank will consider additional data before making a decision on interest rates to ensure a well-informed choice. Economic output and the job market are currently strong. Bond yields indicate that market participants are reassessing their outlook. With inflation above the target and having upside risks, the September rate hike could help anchor inflation expectations.
The Fed still anticipates inflation pressures to ease over the longer term. The unemployment rate is expected to remain stable into the end of this year. The markets analyst with extensive experience in various financial markets weighs in on the situation, observing the overall market response.
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