Fed’s Jefferson sees no urgency for another rate increase

Investing.com -- Federal Reserve Vice Chair Philip Jefferson said Thursday that he does not see any urgency to raise interest rates again, despite supporting last month's increase.

"Any future adjustments in policy should be determined by carefully examining trends in the data, the evolving outlook, and the balance of risks," Jefferson said in remarks prepared for the University of Virginia's Darden School of Business.

Jefferson noted that markets are "reassessing" the outlook amid rising bond market yields. He said "my colleagues and I will need to come to our own judgment, which may take more time" before deciding on the next rate move. "With more data in hand, such trends may lend themselves to better discernment, as may the appropriate stance of monetary policy," Jefferson added.

The Fed raised its benchmark interest rate by a quarter of a percentage point to the 3.75%-4.00% range at its September 15-16 meeting. The central bank released forecasts projecting another rate increase before the end of 2026.

New York Fed President John Williams said Tuesday he saw no urgency in raising rates as policymakers review more data. He added that he still expected a rate hike before the end of this year.

Financial markets broadly expect the Fed to keep rates unchanged at its October 27-28 meeting.

Jefferson said he sees inflation staying "elevated" in the near term "before resuming its decline toward our 2% goal as the effects of energy and other price shocks fade." He added, "I view risks to my inflation forecast as tilted to the upside due to recent geopolitical developments and stronger-than-anticipated aggregate demand."

The Fed vice chair said the risks to economic activity and the job market are "roughly balanced." He added that the economy is "likely to show continued resilience ... by adding jobs and extending a six-and-a-half-year-long expansion."

Original Article

You May Also Be Interested In

• Clear Street Upgrades TETRA Technologies Inc. (TTI) to Buy
• NielsenIQ selected by Maverik as analytics provider
• Hyperscale Data reports $56.4M in Bitcoin and cash holdings