Federal Reserve Board nominee Philip Jefferson said on Thursday in a Senate hearing that inflation is high and has multiple components, with the pandemic having had very important impacts on supply chains. Monetary policy cannot address the supply side, he noted, but added that the directive is clear that the Fed must take steps to bring inflation back in line with its target. 

Market Reaction

Jefferson's comments have not had a notable impact on markets, though markets will continue to monitor his remarks at the Senate hearing, as well as comments from fellow nominees Sarah Raskin and Lisa Cook.