The vice president of the Federal Reserve (Fed), Philip Jefferson, assured this Friday that he is “moderately optimistic” with the economic prospects of the United States, while indicating that improved productivity can contribute to disinflation.
“There remain some upward risks, but I am confident that the disinflationary process will resume this year once the rise in prices caused by tariffs is fully transferred to prices,” he said during an event held in Washington by the ‘Brookings Institution’.
“In addition, the expected strong productivity growth can be additional help in reducing inflation to our 2% target,” he said.
Jefferson insisted that the Fed remains “strongly committed” to price stability and that the likelihood of obstacles to Donald Trump’s trade lead to a sustained rebound in inflation are “low.”
Thus, the current monetary policy It would be “well positioned” to react to any adverse event that jeopardizes the Fed’s dual mandate of maximizing employment and keeping inflation at bay.
