Federal Reserve Governor Jefferson suggested that there is no need to adjust policies in the near future.

Federal Reserve Governor Jefferson stated that the central bank's interest rate position is "favorable" for a stable economic condition, indicating that he is not in a rush to resume the rate cuts that the Federal Reserve paused in January. Jefferson admitted during a speech at the Brookings Institution in Washington on Friday that the inflation rate is above the Federal Reserve's 2% target, but he expects inflation to pick up later this year. He estimated that at the same time, the economy appears overall healthy and may achieve about 2.2% growth by 2026. According to a published speech transcript, Jefferson said, "I see signs that the labor market is stabilizing, inflation can return to our 2% target trajectory, and sustainable economic growth will continue." Jefferson said that the three rate cuts from September to December last year have lowered the target rate of the Federal Reserve to a range of 3.5% to 3.75%, close to the estimated level of the neutral rate, which neither stimulates nor restrains the economy. He said that this position strikes a reasonable balance between the two risks the Federal Reserve faces, namely slowing labor market recruitment and ongoing price increases.