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More from Fed’s Jefferson: Current policy is restrictive

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More from Feds Jefferson:

  • It could be the case that rise in the long-run treasury yields reflects anticipation for strong growth
  • Current policy is restrictive.
  • Finding the right stance of policy is my concern.
  • As a policymaker unmindful cumulative effects of past rate increases has NOT been felt
  • we need to do our work to bring the inflation rate down before we can assess what long-run R-star is

Fed probabilities now:

  • 14% in NOvember vs 16% earlier today
  • Price of cut in June 2024 vs July earlier today

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