Fed needs to move slowly with further rate cuts, Jefferson says

By Howard Schneider

Mon, November 17, 2025 astatine 8:33 AM CST 1 min read

By Howard Schneider

WASHINGTON (Reuters) -Federal Reserve Vice Chair Philip Jefferson said connected Monday the U.​S. cardinal slope needs to "proceed slowly" ‌with immoderate further involvement complaint cuts arsenic it eases argumentation towards a level ‌that would apt halt putting downward unit connected inflation.

In remarks prepared for transportation astatine a Kansas City Fed event, Jefferson said helium agreed the cardinal bank's quarter-percentage-point complaint chopped past ⁠month was appropriate, ‌given accrued risks to the occupation marketplace and the likelihood that ostentation risks "have declined somewhat recently.‍"

"The existent argumentation stance is inactive somewhat restrictive, but we person moved it person to its neutral level that neither restricts nor ​stimulates the economy," Jefferson said. "The ‌evolving equilibrium of risks underscores the request to proceed dilatory arsenic we attack the neutral rate."

Fed officials are divided implicit the request to chopped rates further, with antithetic opinions astir the level of ostentation hazard and whether the occupation marketplace is apt ⁠to erode further.

The deficiency of authorities information ​has made investigation each the much ​complicated, and Jefferson said "it remains unclear however muchofficial information we volition see" earlier the December ‍9-10 Fed ⁠policy meeting.

The Bureau of Labor Statistics volition merchandise its cardinal monthly employment study for September connected Thursday, but the ⁠full work docket for different information disrupted by the now-ended 43-day ‌government shutdown has not been announced.

(Reporting by Howard ‌Schneider; Editing by Paul Simao)