According to Federal Reserve Vice Chair Philip Jefferson, the U.S. economy is performing well, tariffs are contributing to rising goods inflation, and there is increased uncertainty about the future. Jefferson suggested maintaining the current policy rate at a moderately restrictive level, closely monitoring developments in employment and prices before making further adjustments. He emphasized the need for careful evaluation of the impact of recent trade policies on inflation and economic growth. Jefferson acknowledged ongoing changes in trade, immigration, fiscal, and regulatory policies and stressed the importance of assessing their combined effects on the economy and monetary policy. The Fed opted to keep the policy rate steady last month, considering factors like a slowing economy and stagnant inflation. Jefferson highlighted the possibility of maintaining current policy measures if economic strength continues, while being prepared to ease policy if unexpected weakness in the labor market or rapid decline in inflation occurs.