In a speech delivered at the 2026 Bank of Japan-Institute for Monetary and Economic Studies Conference in Tokyo, Federal Reserve Vice Chair Philip Jefferson discussed the current state of the U.S. economy and monetary policy. He stated that the existing federal funds rate range of 3.50% to 3.75% positions the Fed well to respond to incoming data and evolving risks. Jefferson refrained from indicating any predetermined outcomes for the upcoming June 16-17 Federal Open Market Committee (FOMC) meeting, emphasizing the importance of a data-driven approach. He identified upside risks to inflation, particularly due to energy shocks, while expressing confidence that tariff and energy-related price pressures would likely ease later in the year. Jefferson also noted that while recent economic activity has been stable, there are concerns regarding employment conditions. His remarks were significant as they were his first since the appointment of new Fed Chair Kevin Warsh, who is expected to face challenges in addressing inflation while considering potential rate cuts.