Federal Reserve Vice Chair Philip Jefferson suggested that the central bank’s key rate may have to remain at its peak for a while to bring down persistently elevated inflation.
FILE - Philip Jefferson, then-nominee to be a member of the Federal Reserve Board of Governors, listens during a Senate Banking, Housing and Urban Affairs Committee confirmation hearing on Feb. 3, 2022, in Washington. – Federal Reserve Vice Chair Philip Jefferson suggested Tuesday that the central bank's key rate may have to remain at its peak for a while to bring downIn a speech, Jefferson said he expects inflation to continue to slow this year.
In February, Jefferson had said that should inflation keep slowing, “it will likely be appropriate” for the Fed to cut rates “at some point this year" — language that Powell has also used. Yet that line was excluded from Jefferson's remarks Tuesday. “While we have seen considerable progress in lowering inflation, the job of sustainably restoring 2% inflation is not yet done,” Jefferson said.
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