Fed governor sees labor stability

Governor Jefferson's comments provide a more optimistic outlook for the US economy as it navigates the impact of the Iran war and high energy costs.

He emphasized that the central bank's current policy setting remains appropriate, though the conflict could still stoke short-term inflation.

The Fed is closely monitoring shifts in hiring and wage growth to determine the timing of future interest rate cuts.

This assessment comes as a relief to some investors who had feared a more severe downturn in the jobs market.