Fed Vice Chair Philip Jefferson said in a speech today while tariffs have added to price pressures, the impact has been “lower than what many forecasters predicted” this spring. Encouragingly, short-term expectations have eased from Q2 highs, while long-term expectations remain anchored. He warned that the job market could “experience stress” if left unsupported, and said this was a key reason he backed a 25bp rate cut at the last FOMC meeting. Looking ahead, Jefferson stressed that policy will remain data-dependent, with the Fed monitoring both economic indicators and government policies. Full speech of Fed’s Jefferson here.