Overview

• Vice Chair Philip Jefferson said employment risks are tilted lower and inflation risks higher, calling the recent 0.25-point cut appropriate to support the labor market.
• Jefferson declined to signal support for another move at this month’s meeting, noting he is assessing conditions without the September payrolls report.
• Chicago Fed President Austan Goolsbee warned of deterioration on both sides of the Fed’s mandate and argued against anticipating rapid or excessive easing.
• Goolsbee said he favors gradual reductions over time and noted underlying indicators still point to a fairly stable labor market.
• Both officials emphasized a data-dependent approach as higher-than-target inflation and softening job creation complicate near-term decisions.