Fed’s Jefferson Says Weaker Labor Market Shifts Balance of Risks

Federal Reserve Vice Chair Philip Jefferson on Monday said he sees risks to the labor market as skewed to the downside, though repeated his view that policymakers need to proceed slowly as interest rates approach neutral.

“I see the balance of risks in the economy as having shifted in recent months with increased downside risks to employment compared to the upside risks to inflation, which have likely declined somewhat recently,” Jefferson said in the text of a speech delivered Monday at the Kansas City Fed.

Jefferson’s remarks suggest he is keeping options open on whether to ...