Fed's Jefferson: Expect economy to slow, future inflation uncertain due to tariffs

(Reuters) -Recent inflation data point to continued progress toward meeting the U.S. Federal Reserve's 2% inflation goal, but the outlook is now uncertain due to the possibility new import taxes will drive prices higher, Fed Vice Chair Philip Jefferson said on Wednesday. Consumer prices in April rose less than analysts expected, but "there is much uncertainty...around the future path of inflation," Jefferson said in comments prepared for delivery at a New York Fed event. "Whether tariffs create persistent upward pressure on inflation will depend on how trade policy is implemented, the pass-through to consumer prices, the reaction of supply chains, and the performance of the economy."