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Fed’s Jefferson: Labor market is softening, could face stress if not supported

Federal Reserve (Fed) Vice Chairman Philip Jefferson said on Tuesday, “labor market is softening, could face stress if not supported.”

Additional quotes

Expect disinflation to resume after this year.

See growth remaining around 1.5% for the rest of 2025.

Impact of administration policy still evolving.

Consider uncertainty around baseline outlook as especially high.

USD under pressure on shutdown risk – BBH

A possible US government shutdown first thing Wednesday morning is keeping USD under downside pressure, supporting Treasuries and driving gold prices to new highs. The logic is that a government shutdown could lead to a more dovish Fed. If a shutdown is brief, the Fed will ignore it.
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USD: Another shutdown under way – Commerzbank

It should be noted that Vice President JD Vance has already warned that a government shutdown is imminent following talks with the Democrats, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.
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