Fed Vice Chair Jefferson Urges Patience on Rates Amid Upside Inflation Risks

Federal Reserve Vice Chair Philip Jefferson signaled a patient approach to monetary policy, indicating the central bank will evaluate incoming data before deciding future interest rate adjustments. Speaking at the University of Virginia's Darden School of Business, Jefferson endorsed the Fed's September 25-basis-point hike to a 3.75%-4.00% range. He warned inflation risks tilt upward, citing headline August PCE inflation at 3.4%, alongside pressures from energy, trade policy, and artificial intelligence investments. Despite lingering risks, Jefferson expects inflation to moderate toward 2%, projecting GDP growth around 2.4% and unemployment to hold steady near 4.1%.