Federal Reserve Vice Chairman Jefferson: Central bank policy is in a very good position and can patiently observe.

Federal Reserve Vice Chair Philip Jefferson stated that the central bank must ensure that any price increases resulting from policy changes do not lead to sustained inflation. U.S. President Donald Trump has imposed broad new tariffs on many U.S. trading partners and has also proposed and implemented other immigration and regulatory policy reforms. Economists widely expect that changes in trade policy will exert upward pressure on inflation and restrain economic growth, although there is still significant uncertainty about the ultimate scale of the tariffs and their potential impact on the economy. "I think it is important for monetary policy to ensure that any price increases do not sustained inflation," Jefferson said at the Atlanta Fed 2025 Financial Markets Conference held in Fernandina Beach, Florida on Monday. Jefferson stated that the Fed's policy stance is in a "very good position" and is "moderately restrictive" towards the economy.