Federal Reserve Vice Chairman Jefferson expects economic growth to slow down and inflation may rise.

Federal Reserve Vice Chairman Philip Jefferson stated that tariffs and related uncertainties may slow down economic growth and raise inflation this year, but monetary policy is prepared to respond if necessary. Jefferson emphasized the increasing uncertainty in government policies and stated that it is currently unclear whether tariffs will have a short-term or more lasting impact on prices. He lowered his expectations for economic growth this year, but still expects the economy to continue expanding. "If the announced tariff hikes continue to exist, they may hinder the process of inflation slowing down and at least temporarily raise inflation," Jefferson said in prepared remarks at a conference held by the New York Fed on Wednesday.