Vice Chair of the U.S. Federal Reserve, Philip Jefferson, stated that he is in no rush to change the central bank's policy rate.
Philip Jefferson's Statement
Jefferson mentioned that the current policy remains restrictive despite cutting rates by 100 basis points in late 2024. He said, 'We can be patient and wait to see the net effect of any policy changes by the current administration.'
Fed's Decision After FOMC Meeting
After the FOMC meeting on January 28th, the Federal Reserve decided to stick with the 4.25%-4.50% funds rate. In a press release following the meeting, the Committee stated that the risks to achieving its employment and inflation goals are roughly in balance.
Economic Outlook and Policy
The Federal Reserve wants to stay on hold for now and assess the 'net effect' of Trump's policies on immigration, taxes, deregulation, and tariffs. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.
Philip Jefferson emphasized the importance of observing the economic impacts of current policies before taking further steps.
