"Assessing the U.S. Economic Outlook: Fed's Jefferson Foresees Delayed Rate Cuts Amid Modest Inflation Decline"

Vice Chair Jefferson discussed the U.S. economic outlook and monetary policy, highlighting the resilience of consumer spending, improvements in the labor market, and progress towards the Federal Reserve's 2 percent inflation objective. Drawing from past monetary policy cycles, Jefferson emphasized the need for vigilance and nimbleness in policymaking, especially in response to potential adverse shocks. He also outlined key risks ahead, including the potential for even more resilient consumer spending, weakening employment, and elevated geopolitical risks, while expressing cautious optimism about progress on inflation and the need to review incoming data for future monetary policy decisions.