Fed official's inflation assessment

The Fed’s Washington-based board of governors is focused on reducing too-high inflation so the U.S. economy can return to sustained growth, two Fed policymakers and an economist said. Speaking before the Senate Banking Committee on Wednesday, Fed chairman and vice chairman nominee Philip Jefferson said inflation is “beginning to decline” but that the Fed will continue to focus on returning inflation to its 2% goal. “The economy faces a number of challenges, including inflation, banking sector stress and geopolitical instability. The Fed must be vigilant against all of these. Inflation has begun to decline, and I remain focused on returning it to our 2% goal,” Jefferson said in a brief remarks. Fed Chair Lisa Cook, who was reappointed to a 14-year term after her current term ends in January, has harshly described the current moment as a “critical juncture” for the U.S. economy. “As I told this committee last year, high inflation is a serious threat to the continued growth of the U.S. economy. I will continue to focus on inflation until our job is done,” she said. Cook and Jefferson joined the unanimous Fed vote last week to keep the Fed policy rate steady at 5%-5.25%.