Fed's Jefferson Says Labor Market Resilience Allows Inflation Fight Focus

On May 28, 2026, Federal Reserve Vice Chair Philip Jefferson said the U.S. labor market's resilience to recent energy shocks enables the central bank to prioritize bringing inflation back to its 2% target. Speaking in Tokyo, his first public remarks since new Fed Chair Walsh took office on May 22, Jefferson emphasized that price stability is the paramount objective. He noted the job market's strength gives policymakers room to combat persistent price pressures. Jefferson acknowledged uncertainty from Middle East-driven oil price spikes but said the Fed is monitoring secondary effects. He also highlighted that booming AI investment is offsetting energy headwinds, fueling economic growth. The FOMC next meets June 16-17, with markets expecting rates to hold steady.