Federal Reserve Vice Chair Jefferson has indicated that the current interest rate policy is "fully appropriate" for the current economic conditions, suggesting no immediate need for policy adjustments. Despite inflation rates remaining above the Fed's 2% target, Jefferson expects a decline in inflation later this year. He forecasts economic growth of approximately 2.2% in 2026, with signs of labor market stabilization and a return to the 2% inflation target. The Fed's recent rate cuts, which brought rates to 3.5%-3.75%, are seen as aligning with a neutral market level, balancing economic stimulation and restraint.