The vice-chair of the Federal Reserve reiterated the need for the US central bank to “proceed carefully” with forthcoming interest rate decisions, emphasising his focus on the recent surge in borrowing costs.
Officials “are in a sensitive period of risk management”, needing to balance the respective risks of not tightening enough and being too restrictive, Philip Jefferson said in prepared remarks on Monday.
“I will remain cognisant of the tightening in financial conditions through higher bond yields” while assessing “the future path of policy”.
His comments aligned closely with those from Dallas Fed president Lorie Logan, who earlier on Monday noted that tighter financial conditions could mean the bank does less in terms of raising its policy rate.
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