MNI BRIEF: Fed's Kugler Says Makes Sense To Hold For Some Time
MNI (WASHINGTON) - Federal Reserve Governor Adriana Kugler said Friday it makes sense for the central bank to hold interest rates for some time, given that the economy is holding up, inflation is sticky above the Fed's target, and there are new policies in America adding uncertainty.
"The cautious and the prudent step is to hold the federal funds rate where it is for some time, given that combination of factors, given that the economy is solid, given the fact that we haven't achieved our 2% target, and given the fact that we may have uncertainties and other factors that may be pushing up inflation or maybe reducing output and growth into the future," she said in Q&A at an Economic Club of Miami event. Kugler said the labor market is stable and that gives the central bank "a little bit of time to make decisions" and inflation in the past few months "has firmed a little bit."
There has been some progress in housing inflation and services prices. But non-market services inflation has increased and there is less progress in goods inflation, she said. (See: MNI INTERVIEW: Fed Likely On Hold For Most Of 2025-Kroszner)