Fed: Jefferson warns that the Fed is not in a hurry to change the rates

The vice president of the Board of Governors of the Federal Reserve (FED), Philip Jefferson, had the dubious honor of being the first high profile speaker of the Fed after the Trump administration fees ads this week. The VC of the Fed, Jefferson, said that although the economic data remains stable in general, political uncertainty remains the main risk for the trajectory of the Fed rates, and added its own warning to the growing battery of caution signals of those responsible for the Fed that the Fed could be forced to keep the interest rates without changes even more time of the expected work do not continue to improve.

Key quotes

• There is no need to hurry in the policy rate settings.
• We could maintain the restriction of current policy for a longer time, or relax politics, depending on the progress of inflation and labor market.
• The current policy rate is well positioned to deal with risks and uncertainties.
• The latest data show that inflation remains lateral.
• The labor market is solid and well balanced.
• The policy rate is now something restrictive.
• The increase in assets inflation is partly due to commercial policy, a fall in housing services inflation could help counteract.
• Long -term inflation expectations remain consistent with the 2%objective.
• I am vigilant about the collateral effects of federal government layoffs in other sectors.
• I anticipate a slight cooling of the labor market this year.
• There are recent signs that consumer spending could be weakening.
• The negative feeling often does not translate into a slowdown in real activity.
• If uncertainty worsens, economic activity could be limited.
• The economy is solid, but high uncertainty between consumers and companies is related to commercial policy.
• There is still substantial uncertainty around trade.
• Uncertainty can affect spending and investment decisions.
• It will be important to take our time and think about the impact.
• When evaluating policy changes, I try to focus on collective policies, including tax and immigration regulation.
• Net effect of all policies that influence the vision of monetary policy.
• I don’t want to overcome what can be proposed today.