Fed Official Says Inflation Shows No Major Second-Round Effects
A Federal Reserve official reported that policymakers are not yet seeing significant second-round effects on inflation. The official cited considerable uncertainty around the energy price outlook and noted the job market has shown signs of stabilization. The comments come as the central bank continues to monitor economic conditions.
americanbanker.comA Federal Reserve official said Thursday that the central bank is not yet observing significant second-round impact on inflation. The official added there is considerable uncertainty surrounding the energy price outlook. At the same time, the job market has been showing signs of stabilizing, described as neither hot nor slowing sharply.
The remarks provide an update on how officials view current price pressures and labor market conditions. Second-round effects typically refer to wage and price spirals that can follow initial inflation shocks.
The official highlighted uncertainty in energy prices as a key variable that could influence future inflation readings. Energy costs have fluctuated in recent months amid global supply factors. On employment, the assessment points to a labor market that has cooled from earlier tightness without tipping into sharp slowdown.
This balance has been a central focus for monetary policymakers weighing interest rate decisions. The comments were reported by @FirstSquawk on May 15, 2026.
Key Facts
Potential Impact
- 01
Energy price uncertainty may keep volatility in related forecasts and consumer costs.
- 02
The comments may influence expectations for future Federal Reserve interest rate decisions.
- 03
Markets could adjust views on inflation persistence based on the reported lack of second-round effects.
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