MNI BRIEF: Fed's Kugler Sees Renewed Progress On Inflation
MNI (WASHINGTON) - Federal Reserve Governor Adriana Kugler said Tuesday inflation is firmly back on a downward path that gives her growing confidence it is returning to the central bank's 2% target.
"We have gotten back on track. We’re seeing that progress, and we’re seeing it in all categories," she told a National Association of Business Economists conference. "I’m cautiously optimistic that we’re seeing progress, and the type of progress that we need to get back to 2%." (See: MNI INTERVIEW: Fed Cuts Near, Hiring Weaker Than Appears - Wilcox)
Kugler also cited a rebalancing in supply and demand in the labor market and added officials are increasingly attuned to the risk that employment could deteriorate too quickly. "We don’t want the labor market to cool too much. We want that cooling but we’re still seeing the resilience in the labor market," she said.