Federal Reserve Vice Chair: The labor market would face potential pressure without Federal Reserve support

September 30th: The Federal Reserve Vice Chair, Jefferson, expressed his expectation that the U.S. economy would continue to grow at a rate of approximately 1.5% for the rest of the year. He cautioned that without the support of the Fed, the job market might encounter potential pressure. He demonstrated his support for the 25-basis-point rate cut by the Fed at the September meeting in order to balance the ongoing risks of inflation exceeding the target and the growing threats to the job market. Jefferson stated, "The labor market is showing signs of softening, which implies that it could be under pressure in the absence of support." He further indicated that he anticipates inflation to begin declining back to the Fed's 2% target level after this year. Jefferson pointed out that the impact of the Trump administration's trade, immigration, and other policies is still in a state of evolution, introducing a particularly high degree of uncertainty into his baseline projections. Although tariffs have had a lower-than-expected impact on inflation and other economic aspects, Jefferson said he expects these effects "to become more evident in the coming months." (FXStreet)