Latest remarks from a Federal Reserve official — Jefferson, one of the 2026 voting members Jefferson, the Fed Vice Chair and a 2026 voting member, believes that after the 25 basis point rate hike in September, there’s no need to rush into the next decision. He supports raising the federal funds rate to 3.75%-4.00% but emphasizes that future adjustments should depend on data trends, economic outlook, and risk balance. The continued rise in U.S. Treasury yields also indicates that financial conditions and market expectations are shifting, suggesting the Fed may act more cautiously moving forward. Jefferson also noted that GDP annualized growth in the first half of 2026 is at 2.4%, with an August unemployment rate of 4.1%, which is close to full employment. AI investments continue to support growth. However, Jefferson maintains that inflation remains high, with August PCE up 3.4% year-over-year, exceeding the 2% target for over five years. Factors like energy, AI infrastructure development, and relatively strong demand still pose upside risks. Following Jefferson’s remarks, CME’s probability of an October Fed rate hike dropped to 27.7%. A quick @Gate to trade more markets!