Fed's Jefferson Keeps 2% Inflation Focus as Labor Market Stays Resilient
Updated
Updated · Reuters · May 28
Fed's Jefferson Keeps 2% Inflation Focus as Labor Market Stays Resilient
7 articles · Updated · Reuters · May 28
Philip Jefferson said the Fed can keep its attention on bringing inflation back to 2% because the U.S. labor market has remained "very resilient" despite the current energy shock.
In Tokyo, the Fed vice chair said policymakers are still assessing how long the war-driven energy shock will last, making it hard to signal the exact path of rates meeting by meeting.
Jefferson said rising energy and gasoline prices are hitting households, but AI-led investment is still supporting growth, leaving the economy expanding even as the shock acts as a headwind.
In prepared remarks, he said policy is currently in the right place despite upside inflation risks and said he has not prejudged the June 16-17 FOMC meeting.
If AI fuels both growth and inflation, can the Fed tame prices without killing the boom?
As AI boosts the economy, is it creating a lost generation of young American workers?
Will changing how inflation is measured solve the problem, or just hide it from the public?