Federal Reserve Vice Chair Philip Jefferson acknowledged recent progress on inflation but cautioned that new tariffs could reverse that trend.
While April’s CPI data came in softer than expected, Jefferson noted that sustained import taxes may temporarily push inflation higher — and possibly slow the economy.
He emphasized the need for a steady hand on interest rates, calling current levels “well positioned” to respond to emerging risks.
Business and consumer sentiment have dipped, and the Fed is now closely monitoring for signs of economic slowdown.