Fed's Jefferson: Will keep policy in a place to be sure inflation expectations remain anchored

Federal Reserve (Fed) Vice Chairman Philip Jefferson said on Monday that there are risks to both jobs and inflation and added that it is appropriate to wait and see on rate decisions, given the the uncertainty, per Reuters.

Key takeaways

"The impact of tariffs on the Fed's mandates is top of mind."

"The risks to Fed's mandates depends on policy choices by the administration that have not been made."

"US could face a one-time increase in the price level from tariffs, need to be sure that does not become a sustained increase in inflation."

"Will keep policy in a place to be sure inflation expectations remain anchored."

"So far the labor market has been very resilient."

"It is too early to tell how the labor market will be effected by administration policies."

"There are no active conversations about changing the ample reserve operating framework."

"At a time when financial markets are changing, it is important the Fed stays focused on its mission."

"The downgrade will be treated the same as other incoming data, with focus on implications for jobs and inflation."

Market reaction

The US Dollar Index stays on the back foot following these comments and was last seen losing 0.7% on the day at 100.26.