Fed's Jefferson: Happy to keep Fed Funds on hold at current rate

Lallalit Srijandorn FXStreet

Federal Reserve Vice Chair Philip Jefferson said on Thursday that he is happy to keep the Fed Funds on hold at the current level, adding that he will wait to see the net effect of Trump policies.

Key quotes

Waits to see net effect of Trump policies.

Examining overall impact of Trump administration on policy goals needed.

Opts to maintain current interest rates for the time being.

Content with current policy level until totality of impacts better understood.

Sees Fed's ability to be patient with the economy in a good place.

Fed's rate still restrictive even with 100 bp drop.

Policy rate remains restrictive for the economy.

Market reaction

The US Dollar Index (DXY) is trading unchanged on the day at 107.60, as of writing.

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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