Inflation for a broad array of services in the United States remains 'stubbornly high,' Federal Reserve Governor Philip Jefferson said Monday, though slower-growing wages might help slow prices in those parts of the economy as well.
Member of the Federal Reserve Board of Governors Philip Jefferson attends a dinner program at Grand Teton National Park where financial leaders from around the world are gathering for the Jackson Hole Economic Symposium outside Jackson, Wyoming, U.S., August 25, 2022. REUTERS/Jim Urquhart
In later comments in response to questions, Jefferson said he was under "no illusion" that inflation would return quickly to the Fed's target, and noted that the Personal Consumption Expenditures price index remained "elevated," jumping unexpectedly last month to a 5.4% annual rate versus a 5.3% rate as of December."I'm under no illusion that it's going to be easy to get the inflation rate back down to 2%," Jefferson said.
Jefferson did not detail his views on the Fed's upcoming policy decision, or how much higher he thinks the target federal funds rate might have to move beyond the 4.5% to 4.75% range set at the Fed's last meeting. The central bank meets on March 21-22 and is expected to approve a quarter point rate increase, while also providing new projections about policy for the rest of the year.
Covers the U.S. Federal Reserve, monetary policy and the economy, a graduate of the University of Maryland and Johns Hopkins University with previous experience as a foreign correspondent, economics reporter and on the local staff of the Washington Post.
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