Federal Reserve Vice Chairman Jefferson hinted that no policy adjustments are needed in the short term.

According to ME News, on February 7th (UTC+8), Federal Reserve Vice Chairman Thomas Jefferson stated that the central bank's current interest rate stance is "perfectly suited" to robust economic conditions, indicating that he is in no hurry to resume the rate cuts that the Fed paused in January. Jefferson noted that although inflation has consistently exceeded the Fed's 2% target, he expects the downward trend in inflation to resume later this year. He also estimates the overall economic condition to be good, with economic growth projected to reach approximately 2.2% by 2026. He stated, "I see some signs that the labor market is stabilizing, inflation is poised to return to our 2% target, and sustainable economic growth will continue." Jefferson noted that the three rate cuts implemented by the Fed between September and December of last year adjusted interest rates to a range of 3.5% to 3.75%—close to market expectations of a "neutral level," a level that neither stimulates nor inhibits the economy. He pointed out that this stance strikes a reasonable balance between the two major risks facing the central bank. (Source: ME)