01:18 PM EST, 11/17/2025 (MT Newswires) -- The Federal Reserve should move "slowly" with its monetary policy easing as the balance of risks has shifted, Vice Chair Philip Jefferson said Monday.

Jefferson voted in favor of the quarter-percentage-point rate cut that the Fed delivered last month, which followed a similar move in September, amid concerns regarding the labor market.

"The current policy stance is still somewhat restrictive, but we have moved it closer to its neutral level that neither restricts nor stimulates the economy," Jefferson said in prepared remarks for a speech at the Fed's Kansas City branch. "The evolving balance of risks underscores the need to proceed slowly as we approach the neutral rate."

Upside inflation risks have likely "declined somewhat," while downside risks to employment are on the rise, he said.

"Thinking more broadly, I see the balance of risks in the economy as having shifted in recent months with increased downside risks to employment compared to the upside risks to inflation, which have likely declined somewhat recently," Jefferson said.

On Friday, Kansas City Fed President Jeffrey Schmid said that inflation remains too hot, cautioning that additional rate cuts may stoke price pressures. Schmid voted in favor of leaving rates unchanged last month.

On Wednesday, Atlanta Fed President Raphael Bostic said the Fed should keep its monetary policy steady until there's "clear evidence" that inflation is approaching the central bank's 2% goal. On Oct. 31, Dallas Fed President Lorie Logan also expressed potential opposition to further easing.

The probability that the Federal Open Market Committee will cut interest rates by 25 basis points next month fell to 40% on Monday from 44% on Friday and 62% a week ago, according to the CME FedWatch tool.

Recent data show that progress on inflation has stalled, probably due to the temporary effects of tariffs, but most measures of near-term price growth expectations have retraced their spring gains, Jefferson said.