MNI BRIEF: Fed's Jefferson- Need To Wait And See On Rates

Federal Reserve Vice Chair Philip Jefferson said Monday monetary policy is "in a good place" and policymakers need to wait to see the cumulative impact of tariffs, budget decisions and immigration policies before making a move on interest rates. 

"There are a lot of potential policy changes with regard to immigration, trade, regulation and also fiscal policy. When I think about both sides of our mandate, I have to weigh the totality of all those policies," Jefferson said at an Atlanta Fed conference in Amelia Island, Fla.  

"We’re facing risk to both sides of the mandate now, but I think policy is in a good place. I believe it’s moderately restrictive. Given the uncertainty we’re facing now, I think it is appropriate that we wait and see how policies evolve over time and their impact."  

Tariffs could have a one-time increase in the price level and "it's important monetary policy makes sure any increase in the price level is not converted to a sustained increase in inflation," he said. The labor market has been "very resilient" thus far, and it's too early to tell how things might shift, he said. (See: MNI INTERVIEW: Fed On Hold Until At Least December - Lacker)