Fed’s Jefferson: Debt and Deficit Never Entered Policy Debate

Jefferson's insistence that debt, deficits and politics have stayed out of FOMC deliberations is notable precisely because fiscal sustainability is becoming harder to quarantine from rate-setting, and the pending task-force report gives that claim a near-term test. The more actionable signal is his focus on AI-driven aggregate demand as an inflation source, which ties the capex cycle to the policy reaction function rather than treating it as a productivity story. Whether the task force's findings reinforce or complicate the firewall he describes is the open question.