Fed Vice Chair Jefferson States: Inflation Has Become the Most Important Reference Indicator for Interest Rates

Federal Reserve Vice Chair Philip Jefferson said inflation has become the most important reference indicator as policymakers consider whether to raise interest rates further. Jefferson said recent economic activity and labor market conditions have been solid, price pressures persist, and October price data show inflation is well above target. "Accordingly, I see the trajectory of inflation as the core signal for judging the appropriate stance of monetary policy," Jefferson said in remarks prepared for delivery in San Diego. He added that policymakers should continue to track the latest data and assess whether "further policy adjustments" are needed. Several Fed officials spoke in succession this week, expressing strong concerns about price pressures and reinforcing market expectations for a December rate hike. Jefferson was the last official to speak this week.