Street Calls of the Week
Investing.com -- Federal Reserve Vice Chair Philip Jefferson expressed concern on Friday that the U.S. job market could face stress if not supported by appropriate monetary policy.
Speaking at Drexel University’s LeBow College of Business, Jefferson noted that with inflation remaining above the Fed’s 2% target and signs of labor market weakening, "both sides of our mandate are under pressure."
"I see the risks to employment as tilted to the downside and risks to inflation to the upside," Jefferson said, defending the recent quarter-point rate cut as a balanced approach to supporting the job market while still addressing inflation concerns.
Jefferson did not provide specific guidance on whether he favors another quarter-point cut at the upcoming Fed meeting later in October, which markets currently expect.
The Fed official pointed out that his remarks came without the benefit of September employment data, which would normally have been released Friday morning but was delayed due to the ongoing federal government shutdown.
"This is less than ideal," Jefferson acknowledged, though he added that he does not "focus on a single report" when making monetary policy decisions.