Federal Reserve Governor Adriana Kugler noted that while the U.S. labor market is cooling, it remains resilient.
Speaking at a European Central Bank conference, Kugler highlighted the Fed's aim to avoid a significant slowdown in employment, welcoming the recent drop in unemployment.
Several indicators suggest the job market is normalizing, but the Fed remains cautious to prevent any excessive weakening that could cause undue hardship.
- Labour market cooling has started but the Fed is looking at trends, not single data.
- Healthy levels of jobs creation is very welcome.
- Several metrics point toward labour market cooling.
- I have been seeing serious reduction in inflation.
This highlights the Fed's delicate balance of managing economic normalization without triggering a recession.
