Federal Reserve Jefferson: Inflation and employment targets at risk, reiterates need for caution

Jefferson, vice-chairperson of the Federal Reserve, reiterated concerns on Friday that the central bank was facing two concurrent challenges - the labour market was weakening and inflation remained above target. Jefferson said high levels of uncertainty about the outlook remained, but he expected it to ease as White House policies were finalised. "As these policy changes are implemented and we have more time to judge their impact on the economy, I expect the overall uncertainty around the US economy to decrease," Jefferson said. Jefferson added: "With respect to the future path of interest rates, I will continue to assess the appropriate stance of monetary policy based on the latest data, changes in the outlook and the balance of risks. I will also consider and evaluate government policies and their impact on the economy."