In a recent address on October 9, 2024, at Davidson College in North Carolina, Federal Reserve Vice Chair Philip Jefferson stated that the risks to inflation and employment have reached a balanced state. He noted that while inflation risks have diminished, employment risks have increased, reflecting the complexities of the current economic environment [d341fb3b].
Jefferson highlighted that the Federal Reserve had lowered interest rates by 0.5 percentage points last month, marking the first reduction since the onset of the Covid-19 pandemic. He indicated that forecasts suggest an additional 50 basis points reduction may occur later this year [d341fb3b]. The September jobs report revealed that 254,000 jobs were added, bringing the unemployment rate down to 4.1%, which Jefferson described as a sign of solid economic growth despite a cooling labor market [d341fb3b].
In his speech, Jefferson also emphasized the importance of the Federal Reserve's discount window, particularly in light of recent bank collapses, underscoring its role in providing liquidity to banks during times of financial stress [d341fb3b]. He joined the Federal Reserve in 2022 after serving at Davidson College, bringing a wealth of experience to his current role [d341fb3b].