Fed's Kugler
No hint at something more hawkish here:
- 'Cautiously optimistic' inflation will fall without job market damage
- Fed policy actions have helped bring inflation pressures down, helped anchor inflation expectations
- economy appears to have dodged a wage-price spiral
- Inflation pressures have cooled significantly
- Fed has faced less of a trade off between inflation and jobs
- Workers and employers are better at finding each other now
- Goods and labor shortages have declined
There's not a hawkish word here despite the higher inflation data in January. I was worried this morning after Barkin that we could see something of a coordinated push from Fed officials to warn that rates could stay higher for longer. Instead we get this and yields have crumbled.
