MNI BRIEF: US Rates Near Neutral, Well Positioned - Jefferson

Federal Reserve Vice Chair Philip Jefferson signaled Friday no change to interest rates is needed for now, adding he expects the unemployment rate to hold steady this year and inflation to keep falling to 2%. 

"The current policy stance leaves us well positioned to determine the extent and timing of additional adjustments to our policy rate based on the incoming data, the evolving outlook, and the balance of risks," he said in remarks prepared for an economic conference in Boca Raton, Fla. 

The 175 bps of easing since mid-2024 "have brought the federal funds rate into a range consistent with the neutral rate" and a position that balances the upside risk of persistent above-target inflation and the downside risk of a deteriorating labor market. "This policy stance puts the economy in a good position moving forward," he said. (See: MNI INTERVIEW: Fed Could Cut Around 100BP This Year-Bell)