Federal Reserve Vice Chair Jefferson: Without the support of the Federal Reserve, the job market will face potential pressure

Jinse Finance reported that Federal Reserve Vice Chair Jefferson said he expects the U.S. economy to continue growing at a rate of about 1.5% for the remainder of this year. Without support from the Federal Reserve, the job market could face potential pressure. He stated that he supports a 25 basis point rate cut at the Fed's September meeting to strike a balance between the ongoing risk of inflation above target and the increasing threat to the labor market. Jefferson said, "The labor market is softening, which suggests that without support, it could come under pressure." He added that he expects inflation to begin falling back toward the Fed's 2% target after this year. Jefferson pointed out that the impact of the Trump administration's trade, immigration, and other policies is still evolving, so there is particularly high uncertainty in his baseline forecast. Although the impact of tariffs on inflation and other aspects of the economy has been lower than some economists expected, Jefferson said he anticipates these effects "will become more apparent in the coming months."