Fed’s Jefferson Sees Risks to Both Inflation, Jobs Goals (1)

Federal Reserve Vice Chair Philip Jefferson on Tuesday warned the US central bank faces a softening labor market at the same time as inflation pressures increase, complicating the outlook for monetary policy.

Jefferson said the level of uncertainty around his outlook for the economy is high, given the breadth of policy changes being rolled out by the White House, though some of that uncertainty will diminish as policies are finalized.

Philip Jefferson in Helsinki, on Sept 30.

Photographer: Alessandro Rampazzo/Bloomberg

“I see the risks to employment as tilted to the downside and risks to inflation to the upside,” Jefferson said in remarks prepared for the fourth International Monetary Policy ...