Federal Reserve Vice Chair: The labor market would face potential pressure without Federal Reserve support

BlockBeats News, September 30th: Federal Reserve Vice Chair Jefferson said he expects the U.S. economy to continue growing at a rate of around 1.5% for the remainder of the year. He warned that without the Fed's support, the job market could face potential pressure.

He expressed his support for the Fed's 25-basis-point rate cut at the September meeting to balance the ongoing risks of above-target inflation and the increasing threats to the job market. Jefferson said, "The labor market is softening, which suggests that it could come under pressure without support."

He further stated that he expects inflation to start falling back to the Fed's 2% target level after this year. Jefferson pointed out that the impact of the Trump administration's trade, immigration, and other policies is still evolving, introducing a particularly high level of uncertainty into his baseline projections. Despite tariffs having a lower-than-expected impact on inflation and other economic aspects, Jefferson said he expects these effects "to become more apparent in the coming months." (FXStreet)