Fed Vice Chair Jefferson: Current Monetary Policy is Sound, Will Reassess if Necessary

On July 17, Federal Reserve Vice Chair Jefferson stated that if inflation does not cool down quickly, interest rate hikes should be considered, but he also emphasized that the current monetary policy is in a good state. In a speech prepared for an event at Stanford in California, Jefferson noted that the Fed's current interest rate setting could support the labor market while helping to reduce inflation. However, he added a caveat: "If actual inflation does not begin to cool in the short term, I think we may need to reconsider our current policy stance," he said. "Fortunately, our current policy stance allows us to respond well to economic developments." (Financial Associated Press)