"Federal Reserve Vice Chair Jefferson Advocates Prolonged High Rates Amid Uncertainty"

Vice Chair Jefferson discussed the evolution of economic thinking on monetary policymaking in the presence of uncertainty, highlighting historical examples and lessons learned. He emphasized the importance of understanding uncertainty and its implications for monetary policy decisions, particularly during crisis periods. Reflecting on the current situation, he noted progress in lowering inflation but stressed the need for sustained efforts to restore 2 percent inflation. Jefferson concluded by emphasizing the importance of comprehending the drivers of uncertainty and the role of monetary policy in mitigating its negative impact.