Economic Outlook and Energy Effects Remarks

This document is a set of remarks delivered by Philip N. Jefferson, Vice Chair of the Board of Governors of the Federal Reserve System, during the Global Perspectives Speaker Series at the Federal Reserve Bank of Dallas. Jefferson outlines his updated economic outlook, highlighting the resilience of the U.S. economy driven by consumer spending and business investment. He discusses the current state of the labor market, noting a low unemployment rate but slow job growth concentrated in specific sectors. Jefferson addresses inflation, indicating that it remains above the Federal Reserve's target due to factors such as tariffs and energy prices. He emphasizes the importance of monitoring energy prices, particularly in light of geopolitical tensions, and their potential impact on consumer spending and overall economic activity. The remarks conclude with a discussion on monetary policy, indicating a balanced approach to support the labor market while aiming to bring inflation down to the target rate.