for release on delivery 7 : 30 p. m. est february 4, 2025 u. s. economic outlook and monetary policy remarks by philip n. jefferson vice chair board of governors of the federal reserve system at the economics department special lecture, lafayette college easton, pennsylvania february 4, 2025 thank you, professor smith. it is an honor to be speaking to you today here at lafayette college. 1 i am glad to have the opportunity to return to such a historically important place as easton, pennsylvania, and the lehigh valley. this area was part of this country ’ s colonial beginnings, it was instrumental in the rising of the industrial age, and, as the home to crayola, it very literally played a role in coloring how we see the world. today, this region is leading the way forward with its many outstanding institutions of higher education, very prominently including, of course, lafayette college. today, i would like to take this opportunity to share with you my outlook for the u. s. economy and my views of appropriate monetary policy. this is a useful time to do that, as my colleagues and i on the federal open market committee ( fomc ), the federal reserve ’ s primary monetary policymaking body, held our first meeting of 2025 just last week. overall, the u. s. economy is starting the year in a good position. i expect inflation ’ s slow descent to continue, and i anticipate that economic growth and labor market conditions will remain solid. i have learned, however, that it is wise to be humble about my projections. there is always a great deal of uncertainty around any economic forecast, and currently we face additional uncertainties about the exact shape of government policies, as well as their economic implications. last week, my fomc colleagues and i discussed the latest economic developments and reviewed data that arrived since our previous policy meeting in december. at the conclusion of that meeting, i voted in support of the committee ’ s decision to maintain the target range for the federal funds rate at 4 - 1 / 4 to 4 - 1 / 2 percent. the views expressed here are my own and are not necessarily those of my colleagues on the federal reserve board or the federal open market committee. - 2this decision was made in support of our goals to achieve maximum employment and inflation at the rate of 2 percent over the longer run. i remain focused on setting policy to achieve the dual - mandate goals given to us by congress : maximum employment

crisis with no apparent damage and verified its outstanding resilience. turkish banks are also interested in venture opportunities in the middle east and will contribute substantially to the betterment of the banking systems of the region countries. moreover, i am of the opinion that also the participation banks in turkey operating through the interest - free system will not only contribute to but also benefit from cooperation among these countries. intended as a long - term formation, the common market calls for not only political and economic, but also cultural cooperation. the fact that it is easier to establish commercial and economic cooperation between closer cultures is supported by both history and academic studies. therefore i believe, it is significant that this conference is organized in istanbul, a city that has hosted a great diversity of cultures in the past, as well as being the european capital of culture in 2010. at the end of this conference, a city tour will be organized for our guests who would like to get to know istanbul better. i hope that you all enjoy this beautiful city. bis central bankers ’ speeches