United States Federal Reserve Vice Chair Philip Jefferson stated on Thursday that if the economy moves in the right direction, "it will likely be appropriate to begin dialing back our policy restraint later this year."
Reflecting on monetary policy in his last speech at the Peterson Institute for International Economics in Washington, Jefferson highlighted the significant increase in the federal funds rate by 5-1/4 percentage points between March 2022 and July 2023. He also underscored the decisive nature of these actions, which have positioned the policy rate firmly in a restrictive zone aimed at moderating economic activity and curbing inflation.
"I remain cautiously optimistic about our progress on inflation, and I will be reviewing the totality of incoming data in assessing the economic outlook and the risks surrounding the outlook and in judging the appropriate future course of monetary policy," he concluded.
