Fed Vice Chair Philip N. Jefferson spoke at the University of Detroit Mercy on April 7, 2026, outlining the Federal Reserve’s assessment of the economy. He said growth is near 2 percent, supported by consumer spending and business investment, and that the labor market is in balance but vulnerable to shocks. Inflation remains above the Fed’s 2 percent target; the 12‑month PCE index rose 2.8 percent in February, with core PCE at 3.0 percent. Jefferson cited energy prices, tariffs, and Middle East tensions as sources of uncertainty. Unemployment climbed from 4.0 percent in January 2025 to 4.5 percent in November 2025, then fell to 4.3 percent in March. Job gains were uneven, with 178 000 positions in March and a 70 000‑per‑month average in the first quarter. The Fed’s policy rate has been held steady after a 175‑basis‑point cut over 18 months, aiming to support employment while easing inflation. Jefferson noted Detroit’s improving labor market and a shift from manufacturing to health‑care jobs.
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