Federal Reserve Governor Adriana D. Kugler underscored on Tuesday that the central bank will "likely" start easing its policy "later this year" should the economy "evolve as expected."
During her address at the Peterson Institute for International Economics, Kugler pointed out that recent inflation data has been encouraging, with the United States labor market's supply and demand gradually coming into better balance, with nominal wage growth continuing to "trend down." "But I am watching closely for any signs of labor market deterioration that may take hold, as the FOMC also pays attention to the other side of our mandate," the Fed governor stressed.
"While I remain cautiously optimistic that inflation is coming down, it is still too high, and it is moving down only slowly. I believe that policy has more work to do," Kugler stated, adding that she supported the central bank's decision to hold interest rates at their over-a-decade high last week.
