Fed’s Jefferson Signals a Rate Pause Is on the Way But More Hikes Could Follow
- Vice chair nominee says decision to hold won’t mean Fed done
- Philadelphia Fed’s Harker also backs skipping increase in June
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Federal Reserve Governor Philip Jefferson signaled the central bank is inclined to keep interest rates steady at its next meeting in June to give policymakers more time to assess the economic outlook, but such a decision wouldn’t mean hikes are finished.
“A decision to hold our policy rate constant at a coming meeting should not be interpreted to mean that we have reached the peak rate for this cycle,” Jefferson, recently nominated to be Fed vice chair, said Wednesday in a speech on financial stability and the economy. “Indeed, skipping a rate hike at a coming meeting would allow the Committee to see more data before making decisions about the extent of additional policy firming.”