Federal Reserve Vice Chair Philip Jefferson has indicated that inflation will remain the most important factor guiding his decisions on interest rates. Speaking about the US economy, Jefferson said economic activity and employment conditions remained broadly stable, but price pressures were still persistent. His comments suggest that he could support further interest-rate increases if inflation fails to move toward the central bank’s target. The remarks come as financial markets closely watch signals from Federal Reserve officials to understand whether borrowing costs could rise again in the coming months.
Jefferson supported the Fed’s October decision to keep rates unchanged while policymakers waited for more economic information. However, he stressed that future decisions should depend on changing economic data, the outlook and the balance of risks. He also discussed the growing role of artificial intelligence, saying the technology could gradually improve productivity, increase output and support higher incomes. At the same time, he warned that rapid adoption could replace workers faster than they can retrain, potentially increasing unemployment. His comments highlight the difficult choices facing the Federal Reserve as it tries to control inflation while protecting economic growth and employment.
