Federal Reserve's Jefferson says more time may be needed to assess whether to raise rates

Federal Reserve Vice Chair Philip Jefferson stated that inflation has remained excessively high for too long, and there is still a persistent risk of it staying elevated. However, policymakers may need more time to determine whether further interest rate hikes are necessary. Any future policy adjustments should carefully assess data trends, changes in the economic outlook, and the balance of risks. Jefferson pointed out that U.S. economic activity and the labor market remain robust, but multiple shocks such as rising energy prices, the AI investment boom, and tariffs are impacting the economy, and these factors cannot be considered in isolation when making policy decisions. He also noted that since the September meeting, yields on U.S. Treasuries across all maturities have continued to rise, indicating that investors are reassessing the macroeconomic situation. As more data becomes available, the Federal Reserve will continue to evaluate whether inflation can return to the target level quickly enough, and what kind of monetary policy stance is most appropriate.