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Fed's Jefferson: Expect economy to slow, future inflation uncertain due to tariffs

(Reuters) -Recent inflation data point to continued progress toward meeting the U.S. Federal Reserve's 2% inflation goal, but the outlook is now uncertain due to the possibility new import taxes will drive prices higher, Fed Vice Chair Philip Jefferson said on Wednesday. Consumer prices in April rose less than analysts expected, but "there is much uncertainty...around the future path of inflation," Jefferson said in comments prepared for delivery at a New York Fed event. "Whether tariffs create persistent upward pressure on inflation will depend on how trade policy is implemented, the pass-through to consumer prices, the reaction of supply chains, and the performance of the economy."

Fed’s Jefferson Sees Lower Growth, Says Inflation Could Rise

(Bloomberg) -- Federal Reserve Vice Chair Philip Jefferson said tariffs and related uncertainty could slow growth and boost inflation this year, but monetary policy is well positioned to respond as needed.Most Read from BloombergAs Coastline Erodes, One California City Considers ‘Retreat Now’A New Central Park Amenity, Tailored to Its East Harlem NeighborsPower-Hungry Data Centers Are Warming Homes in the NordicsHow a Highway Became San Francisco’s Newest ParkJefferson stressed heightened uncert