Two prominent members of the Federal Reserve have emphasized a cautious approach to monetary policy amidst ongoing economic challenges. Fed Vice Chairman Philip Jefferson highlighted two key concerns: the weakening labor market and above-target inflation. He acknowledged high uncertainty but expressed hope that clarity regarding White House policies will alleviate this uncertainty in the near future, paving the way for more precise assessments of the economy’s trajectory. Jefferson stressed a data-driven approach to interest rate decisions, prioritizing current economic data, potential risks, and the impact of government policy on inflation. Fed Dallas President Lorie Logan also echoed these cautious sentiments, urging restraint on interest rate cuts. She argued that further tightening should be limited to avoid undue market disruption and emphasized the need for a measured response given the fragile labor market. Logan pointed out that stimulating demand can lead to inflationary pressures without necessarily improving employment levels. Additionally, she highlighted the role of tariffs in increasing inflation and warned of potential long-term inflationary pressures stemming from persistent high inflation in non-housing services. This message emphasizes the complexity of navigating the current economic landscape amidst ongoing challenges.