Skip to main content

Posts

Showing posts with the label Philip N. Jefferson

Brookings Event: Supply-Side Factors and Inflation. Sol Tran, Whitman College.

Federal Reserve Board Vice Chair Philip N. Jefferson spoke at Brookings on Friday Feb 6, 2026. His key point was that, while inflation is still at 3%, already above the target of 2%, he expects inflation to fall as the tariffs make their full way through the system. In his judgment, this is a one-time price level change rather than an ongoing price increase spiral since he believes inflation expectations remain well anchored. Key Drivers The pandemic showed that supply-side factors such as labor shortages, supply chain disruptions, and commodity price spikes following conflicts like the Ukraine war, are crucial. New tariff policies, immigration restrictions that cut the supply of labor and large AI-driven infrastructure investments are some of the current day challenges. China, Canada A panel discussion addressed the electronic vehicle (EV) industry and the evolving trade relationship between China, Canada, and the United States. Panelists noted that China’s slowing domestic economy ha...