Fed Vice Chair Jefferson says he does not want to see any more weakening in the labour market

• Job creation is weaker than they would like.
• Anchored inflation expectations suggest Fed retains credibility on inflation target.
• Headline inflation should subside once the impact of tariffs on goods is absorbed.
• Current rate can support the labour market while inflation is set to decline.

Fed Vice Chair Jefferson's comments signal cautiousness about further weakening in the labor market, implying a potential reluctance to tighten policy aggressively. His emphasis on anchored inflation expectations supports the view that the Fed remains credible in managing inflation, which could influence market sentiment around rates and risk assets. Overall, this reflects a delicate balance between supporting labor demand and maintaining inflation control as growth dynamics evolve.