Federal Reserve Board Governor Philip Jefferson speaks on "Implementation and Transmission of Monetary Policy".
As a Board Governor Jefferson has a permanent vote on the Federal Open Market Committee (FOMC).
- inflation "should fall back" toward the Fed's 2% target as higher interest rates discourage spending in interest-rate sensitive sectors of the economy like housing
- Inflation "has started to come down" with some of that due to tighter monetary policy and some due to other factors such as improving global supply chains
- "monetary policy affects the economy and inflation with long, variable, and highly uncertain lags, and we are still learning about the full effect of our tightening thus far
- did not comment on recent bank stress
- did not provide his views about whether the Fed should continue raising interest rates at upcoming meetings
Philip Jefferson