Fed officials left their benchmark policy rate unchanged in a range of 4.25% to 4.5% at their meeting last week. Fed chair Jerome Powell signaled officials will likely be on hold as they wait for more progress on lowering inflation toward the central bank’s 2% goal, and for clarity over US President Donald Trump’s economic policies.
US Federal Reserve vice-chair Philip Jefferson said it’s appropriate for policymakers to be cautious in adjusting interest rates, as long as the economy and labour market remain strong.
“I continue to see a gradual reduction in the level of monetary policy restraint placed on the economy as we move toward a more neutral stance as the most likely outcome,” Jefferson said in remarks prepared for an event Tuesday at Lafayette College in Easton, Pennsylvania. “I do not think we need to be in a hurry to change our stance.”
