Federal Reserve Signals Cautious Approach as Inflation Risks Ease

Federal Reserve Vice Chair Philip Jefferson cautioned about the need for a cautious approach on monetary policy, indicating potential stability in interest rates despite easing inflation risks. This shift comes as the labor market shows signs of cooling down and supply-demand balance is becoming more balanced. The upcoming Beige Book will further guide future decisions regarding interest rate hikes. In his address on November 17th, Jefferson emphasized the moderation of inflationary pressures and the temporary impact of tariffs.