Federal Reserve Governor Jefferson: No Need to Hurry to Further Cut Interest Rates, Strong Economy Makes Caution Appropriate

According to Bitget's market data, spot gold once dipped below $4,550 per ounce, marking its lowest level since August 21.

Market pricing indicates that the probability of the Federal Reserve raising interest rates in September is currently around 50%.

In the 12 months ending in March, U.S. job growth was more moderate than previously reported, highlighting a cooling labor market trend that has led the Federal Reserve to plan 2025 interest rate cuts despite persistent inflation. According to preliminary benchmark revision data released by the U.S. Bureau of Labor Statistics on Friday, nonfarm payrolls could be revised down by 79,000, a 0.1% decrease. Final figures will be released early next year.

Fed Chair Waller warned that inflation has not seen meaningful moderation, adding that policymakers must be confident price growth is moving in the right direction, otherwise the central bank "has more work to do." Waller reiterated that the Federal Reserve will bring inflation back to its 2% target, calling this a clear, fixed goal. "My criterion is that we must be confident underlying inflation is advancing toward our target at a sufficiently clear and rapid pace. Otherwise, we have more work to do—that is our mandate," Waller said. He also noted that current financial conditions are not restrictive, and interest rates are the Federal Reserve's "primary tool" for fulfilling its duties.

Fed Chair Waller stated: "Although PCE and CPI data released this summer came in better than expected, they do not convince me that the underlying inflation trend has seen meaningful improvement." "Market prices reflect the market’s belief that we will achieve price stability. I can assure you that the market’s judgment is correct." Waller went on to say that with inflation remaining above 2%, the Fed’s "primary focus right now should be on prices." Waller’s highly anticipated remarks come as his pared-back communication strategy faces external criticism. Economists and market participants argue that this strategy has failed to provide clarity on the near-term economic and monetary policy outlook. Waller’s remarks appear to address these concerns, as he elaborated more deeply than before on his views of the economic situation and the Fed’s policy priorities under his leadership. He said: "Let’s also clarify another aspect of our goal: price stability will not be achieved automatically, nor will inflation necessarily return on its own. Achieving price stability is the Fed’s responsibility." It is widely expected that Waller will not take questions from attending central bank officials and economists.

According to Bitget's market data, spot gold has climbed above $4,620 per ounce, surging more than $10 in the short term, with a 0.42% gain on the day.