Fed Vice Chairman: The job market would face potential pressures without the support of the Fed.

On September 30, Fed Vice Chairman Jefferson stated that he expects the U.S. economy to continue to rise at around 1.5% for the remainder of the year. He noted that without Fed support, the labor market would face potential pressure. He expressed support for the Fed's decision to cut rates by 25 basis points at the September meeting to balance the risks of inflation remaining above target with the growing threats to the labor market. Jefferson said, "The labor market is softening, which suggests that it could come under pressure without support." He added that he expects inflation to start to retreat to the Fed's 2% target level after this year. Jefferson pointed out that the effects of the Trump administration's trade, immigration, and other policies are still evolving, so there is particularly high uncertainty around his benchmark forecast. Although the impact of tariffs on inflation and other aspects of the economy is lower than some economists had anticipated, Jefferson stated that he expects these effects "to become more evident in the coming months." ( Jin10 )