Jefferson, Global Economic Developments and the U.S. Economy
FEDERAL RESERVE ·
Skip to main content An official website of the United States Government Official websites use .gov A .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPS A lock ( ) or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites. Back to Home Board of Governors of the Federal Reserve System Stay Connected Federal Reserve Facebook Page At the 2026 Bank of Japan-Institute for Monetary and Economic Studies Conference, Tokyo, Japan Good morning. It is an honor to be here at the Bank of Japan, and I appreciate the opportunity to speak with you today. 1 I am looking forward to our discussion, but first I want to share some framing thoughts. I will briefly discuss three developments in the global economy that I am monitoring, and then I will update you on my outlook for the U.S. economy and the path of monetary policy. The first global development I am tracking is the significant increase in energy prices due to the conflict in the Middle East. The rise in crude oil prices poses downside risks to growth and upside risks to inflation around the globe. Elevated energy prices are particularly challenging for countries like Japan that are net energy importers. While being a net energy exporter buffers the U.S. to an extent against energy shocks, it is not immune to the effects of disruption to global supply. Gasoline prices in the U.S. increased significantly since the onset of the conflict and remain notably elevated. I am watching whether higher energy prices will start to weigh on consumer spending. The second development is the rapid advancement of artificial intelligence (AI) technology. As a central banker, I am optimistic about AI's promise to drive productivity and growth, though I am also monitoring its effects on the labor market and inflation. And the third development is the effects of disrupted trade flows on the global economy. Since the pandemic, there have been multiple disruptions to global trade that have affected both supply and price levels. Against this global backdrop, my focus, of course, is on the U.S. economy. Recent economic growth in the U.S. has been solid, though I expect a more modest pace of growth this year as households face high energy costs. The U.S. labor market is broadly stable, with both hiring and firing at relatively low levels. I see risks to the labor market as somewhat skewed to the downside. Disinflation in the U.S. stalled over the preceding year, largely because of increased tariffs. In recent months, inflation moved notably higher because of higher energy costs. I expect inflation to decline later this year as the effects of tariffs and the energy shock wane, but I view risks around my inflation outlook as tilted to the upside. I am firmly committed to returning inflation to the Federal Open Market Committee's (FOMC) 2 percent target, aligned with our dual-mandate objectives of price stability and maximum employment given to us by Congress. At our last meeting, in late April, the FOMC decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent. I believe this policy stance leaves us well positioned to respond to economic developments based on the incoming data, the evolving outlook, and the balance of risks. I have not prejudged the next meeting and look forward to engaging with my colleagues about the policy necessary to best achieve our dual-mandate goals. Thank you once again for the opportunity to speak with you today. I look forward to our discussion. 1. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Reserve Board or the Federal Open Market Committee. Return to text
AI 시장 분석
The news titled 'Jefferson, Global Economic Developments and the U.S. Economy' does not contain specific details regarding particular economic trends or policy changes. Therefore, based solely on this title, it is challenging to determine bullish or bearish impacts on specific sectors or assets. It is expected to cover general discussions on the overall economic situation.
AI가 생성한 분석으로 투자 자문이 아닙니다.
DYAX Investor Sentiment
Bullish (Long) 69% · Bearish (Short) 31%
409 participants
Related News
- Differences US investments stall plans for Chinese business leaders to join Chinese President Xi's visit to the US, according to SCMP
- Hong Kong Finance Secretary Chan affirms no intention to change HKD peg to USD, adds Hong Kong will remain an open and free economy, while fixed income will be a very big part of Hong Kong
- French President Macron says France is ready to participate in an international operation of a defensive nature to ensure the protection of navigation in the Strait of Hormuz, according to ABC News
- Only 3 commodity vessels transited the Strait of Hormuz on Tuesday vs. 10-day moving average of about 15, according to shipping data
- [CALENDAR ADDITION] US President Trump will host arrival ceremony for Chinese President Xi on Wednesday at 18:00EDT/23:00BST
- PBoC injected CNY 8bln in 7-day reverse repos with the rate kept at 1.40% for a net daily drain of CNY 102bln
