Federal Reserve Vice Chair Philip Jefferson has called for a cautious approach to interest rate cuts to ensure economic stability and manage inflation. In a recent speech, Jefferson emphasized the fragility of the economic recovery and highlighted risks from geopolitical tensions and supply chain issues. He warned that rapid rate reductions could trigger inflationary pressures, potentially undoing recent progress. Jefferson's strategy aims to balance mortgage affordability, savings returns, and business financing costs while providing a stable environment for long-term investments. Market reactions were mixed, with some investors advocating for more aggressive cuts, while others supported Jefferson's focus on sustainable economic health.