Fed Vice-Chairman Jefferson said that the current state of monetary policy was good and would be reconsidered if necessary

On 17 July, the Vice-Chairman of the Fed, Jefferson, stated that if inflation did not cool quickly, interest rates should be considered for an increase, but at the same time that monetary policy was in good shape. In a speech on Thursday prepared for an event in Stanford, California, Jefferson argued that the Fed’s current interest rate setting might support the labour market while reducing inflation. He then added a conditionalities. “If real inflation does not begin to cool in the short term, I think it might be appropriate to reconsider our current policy position”, he said. “Unfortunately, our current policy position has enabled us to respond well to the economic development dynamic.” (Fift)