Fed’s Jefferson signals patience on rates due to Trump’s policy uncertainty

According to a Reuters report, the VC mentioned that the current policy is restrictive despite cutting rates by 100 basis points in late 2024.

The Federal Reserve wants to stay on hold for now and assess the “net effect” of Trump’s policies on immigration, taxes, deregulation, and tariffs before making any further moves. 

He said, “We can be patient and wait to see the net effect of any policy changes by the current administration.”

Earlier, after the FOMC meeting on January 28th, the Fed decided to stick with the 4.25%-4.50% funds rate. In a press release following the meeting, the Fed stated, “The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.”

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