Federal Reserve Vice Chair Philip Jefferson said on Friday he was "cautiously optimistic" about the 2026 economic outlook, with growth expected to remain slightly above trend, the labor market stabilizing, and inflation resuming a decline to the U.S. central bank's 2% target. Current Fed policy is "well positioned" to respond however the economy evolves, Jefferson said in comments prepared for delivery at a Brookings Institution event, language consistent with the Fed's anticipated pause in further interest rate cuts as officials await more job and inflation data.