Fed Gov. Philip Jefferson
  • Policy rate is in restrictive territory.
  • We continue to see labor market come into better balance and inflation decline, though nowhere near as quickly as would have liked
  • Will assess incoming data, evolving outlook, balance of risks to set appropriate stands of policy rate.
  • US economy growing at solid pace, labor market remains solid.
  • Expect consumer spending growth to slow later this year.
  • Too early to tell if recent slowdown in disinflationary process will be long-lasting.
  • April’s better inflation reading is encouraging.
  • Fed staff estimates core PCe prices rose at annual 4.1% in first four months of 2024 with 12 month change at 2.75%.
  • Long-term inflation expectations show Americans believe Fed will make good on 2% inflation goal.
  • Restrictive monetary policy has weighed on housing market.
  • Market rates take a long time to pass through to PCE Housing services prices.
  • Large increase in market rents during pandemic may keep housing services inflation elevated for a while.

Comments from Fed Gov. Jefferson are cautionary (like other Fed officials)