Federal Reserve Vice Chairman Philip Jefferson said that if inflation does not cool down quickly, interest rate hikes should be considered, but at the same time, he said that the current state of monetary policy is good. Jefferson said in a speech prepared for an event in Stanford, California on Thursday that the Federal Reserve's current interest rate setting may support the labor market while reducing inflation. But he immediately added an additional condition. “If actual inflation doesn't start to cool down in the short term, I think we should probably reconsider our current policy position,” he said. “Fortunately, our current policy position allows us to respond well to economic developments.”

Federal Reserve Vice Chairman Philip Jefferson said that if inflation does not cool down quickly, interest rate hikes should be considered, but at the same time, he said that the current state of monetary policy is good. Jefferson said in a speech prepared for an event in Stanford, California on Thursday that the Federal Reserve's current interest rate setting may support the labor market while reducing inflation. But he immediately added an additional condition. “If actual inflation doesn't start to cool down in the short term, I think we should probably reconsider our current policy position,” he said. “Fortunately, our current policy position allows us to respond well to economic developments.”