Lates News

Federal Reserve Vice Chairman Jefferson said the current interest rate stance of the central bank is "completely appropriate" for the solid economic conditions, indicating that he is not in a hurry to resume the rate cuts that the Fed paused in January. Jefferson pointed out that even though the inflation rate has consistently been above the Fed's target of 2%, he expects the trend of declining inflation rates to return later this year. At the same time, he estimated that the overall economic situation is good, with the economic growth rate expected to reach about 2.2% in 2026. He said, "I see signs that the labor market is trending towards stability, inflation is expected to return to our 2% target level, and sustainable economic growth will continue." Jefferson stated that the three rate cuts implemented by the Fed from September to December last year have adjusted interest rates to a range of 3.5% to 3.75% - close to market expectations for a "neutral level" that neither stimulates nor suppresses the economy. He noted that this stance strikes a reasonable balance between the two major risks faced by the central bank.