The Federal Reserve’s 50-basis-point interest-rate cut last month was “timely” and was neither reactive, nor proactive, Fed Vice Chair Philip Jefferson said on Tuesday.
“It was timely and consistent” with the Fed’s two mandates of attaining 2% inflation and maximum employment, Jefferson said at Davidson College in North Carolina.
The Fed’s success in meeting the first mandate by bringing down inflation, he said, allowed the U.S. central bank “to pay increased attention to the other side of the mandate.”
Reuters