Jefferson emphasized readiness to act while noting differing member views on the Federal Reserve’s shrinking balance sheet and the decreasing likelihood of hitting the effective lower bound.
On September 30, Federal Reserve Vice Chair Jefferson confirmed that the federal funds rate remains the primary policy tool and reiterated the Fed's readiness to use all available tools. He noted decreasing likelihood of hitting the effective lower bound and acknowledged differing views on the balance sheet size, which continues to shrink in an orderly manner.