Fed's Jefferson says Fed must deliver on getting inflation to 2%
TLT•Federal Reserve Vice Chair Philip Jefferson said the central bank must do the work necessary to validate confidence that inflation will return to its 2% target. He said longer-term inflation expectations remain consistent with the target but should not be taken for granted.
1. Inflation expectations
Jefferson said longer-term inflation expectations remain consistent with the Fed’s 2% target, which he called evidence that the central bank is still viewed as credible. He said the Fed must be prepared to do the work necessary to validate those expectations.
