Fed Vice Chair Philip Jefferson warns of possible rate hikes
Business
Heads up: The Fed might raise interest rates if inflation doesn't cool off soon.
Vice Chair Philip Jefferson says its current plan supports jobs while aiming for a 2% inflation rate but warns it could switch things up if prices keep climbing.
For now, no rate changes are expected at the July 28-29 meeting since inflation has eased a bit lately.
Philip Jefferson cites inflationary drivers
Jefferson points to higher energy costs, last year's tariffs, and unrest in the Middle East as reasons prices are sticking around.
He also notes that tech like AI could push prices up in the short run before helping out later.
Even with these challenges, he feels good about how strong the US job market is right now.