Central Banks
Fed’s Jefferson Sees Steady Fed Rate Helping to Push Down Inflation
- Fed vice chair says labor market expected to remain strong
- If inflation persistent, should hold rates high for longer
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Federal Reserve Vice Chair Philip Jefferson said he expects inflation will continue to moderate with interest rates at their current level but persistent price pressures would warrant holding borrowing costs high for longer.
Jefferson said Tuesday that while there has been considerable progress in lowering inflation, the Fed’s task of sustainably restoring 2% inflation is “not yet done.”