Fed Gov. Adriana Kugler being at Brookings institute
Fed Gov. Adriana Kugler is a speaking at the Brookings institute and says:
- Pleased with 'great progress' on inflation. Optimistic it will continue.
- Fed's job on inflation 'not done yet'.
- Will remain focused on Fed's inflation goal until confident inflation is returning durably to 2% target.
- Risks to our dual mandate 'roughly balanced'.
- Our policy stance is restrictive.
- At some point, cooling inflation and labor markets may make rate cut appropriate.
- If disinflation progress stalls, may be appropriate to hold policy rate steady for longer.
- Sees 'reasons for optimism' on services inflation, where there has been less progress.
- Core-services ex-housing 'still elevated,' but expect improvement.
- Continued moderation of wage growth, normalization of price-setting, anchored inflation expectations 'likely to contribute' to continued disinflation.
- Pleased that cooling of labor demand has not led to rise in layoffs.
- How spending momentum will evolve this year an open question' affecting disinflationary process.
- Expects consumer spending to grow more slowly this year. Should help with disinflation.
- Some measures of financial conditions have eased, but remain relatively tight and are consistent with continued progress on inflation.
- Paying close attention to upside inflation risks from geopolitics.
In the released comments she does not comment specifically on her expectations for rates going forward..
