MNI: Fed’s Kugler - Watching Policy Shifts Before Acting
MNI (WASHINGTON) - The Federal Reserve is watching economic developments and shifts in policy out of Washington before considering any additional moves to interest rates, Fed Governor Adriana Kugler said Thursday.
“At our latest meeting in January, I supported the decision to hold the policy rate steady. I see this as appropriate, given that the downward risks to employment have diminished but upside risks to inflation remain,” she said in prepared remarks.
“The potential net effect of new economic policies also remains highly uncertain and will depend on the breadth, duration, reactions to, and, importantly, specifics of the measures adopted," she said in a speech at Georgetown University.
She added that “in considering the appropriate federal funds rate, we will watch these developments closely and continue to carefully assess the incoming data and evolving outlook.”
She described the labor market has healthy and stable and inflation as bumpy and still somewhat elevated. “Readings last week from the BLS showed price pressures persisted in the economy in January.”