Fed’s Jefferson: In no rush to reduce level of policy restraint

(Reuters) – U.S. Federal Reserve Vice Chair Philip Jefferson on Wednesday said he is content to keep the central bank’s policy rate in its current position until policymakers get a better sense of the net effects of the Trump administration’s policies on tariffs, immigration, deregulation and taxes.

Even after 100 basis points of rate cuts in the latter part of 2024, Jefferson told students at Swarthmore College that Fed policy remains restrictive and is exerting downward pressure on inflation.

“We can be patient and wait to see the net effect of any policy changes by the current administration,” he said.

(Reporting By Dan Burns; Editing by Sandra Maler)