Little progress has been made in curbing too high inflation, Fed's Jefferson says
Federal Reserve governor Philip Jefferson says inflation remains too high and there has been “little progress” made toward bringing it down to the central bank’s 2% target
WASHINGTON (AP) — Federal Reserve governor Philip Jefferson said Friday that inflation remains too high and there has been “little progress” made toward bringing it down to the central bank's 2% target, a pessimistic assessment given signs in a report earlier this week that price increases might be slowing.
Jefferson, who was nominated by President Joe Biden earlier Friday to the position of Fed vice chair, also said in a speech at the Hoover Institution in California that the turmoil in the U.S. financial system following the failure of three large banks will likely have only a limited impact on the economy.
While inflation has declined from its June peak by about 2.75 percentage points to 4.2% in March, compared with a year ago, Jefferson said that “nearly all” of the decline stemmed from falling energy and food prices.
