financetom
Economy
financetom
/
Economy
/
Fed's Kugler says she supports more rate cuts if inflation keeps easing
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Fed's Kugler says she supports more rate cuts if inflation keeps easing
Oct 9, 2024 11:32 PM

(Reuters) - Federal Reserve Governor Adriana Kugler said on Tuesday she strongly supported the U.S. central bank's recent interest rate cut and will support further reductions if inflation continues to ease as she expects.

"While I believe the focus should remain on continuing to bring inflation to 2%, I support shifting attention to the maximum-employment side of the FOMC's dual mandate as well," Kugler said, referring to the U.S. rate-setting Federal Open Market Committee, of which she is a member.

"The labor market remains resilient, but I support a balanced approach to the FOMC's dual mandate so we can continue making progress on inflation while avoiding an undesirable slowdown in employment growth and economic expansion."

Kugler's prepared remarks at a European Central Bank conference in Frankfurt, Germany were mostly about the shared global reasons for the worldwide bout of inflation that followed the pandemic, and the range of experiences across regions as inflation began to recede.

The Fed lowered rates last month, a move Kugler said she strongly supported, following similar decisions by other central banks including the ECB.

A stronger U.S. economy allowed the FOMC to be "patient about the timing" in reducing its policy rate and focus on bringing inflation down, Kugler said.

"If progress on inflation continues as I expect, I will support additional cuts in the federal funds rate to move toward a more neutral policy stance over time," Kugler said.

Kugler said she is closely monitoring the economic effects of Hurricane Helene and geopolitical events in the Middle East.

"If downside risks to employment escalate, it may be appropriate to move policy more quickly to a neutral stance," Kugler said. "Alternatively, if incoming data do not provide confidence that inflation is moving sustainably toward 2%, it may be appropriate to slow normalization in the policy rate."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
If Unemployment Rises To 4.2% In July, It Would Trigger This Key Recessionary Indicator
If Unemployment Rises To 4.2% In July, It Would Trigger This Key Recessionary Indicator
Jul 30, 2024
Friday’s Bureau of Labor Statistics July jobs report could indicate whether the U.S. economy is trickling into recessionary territory, according to a closely watched indicator. The Sahm Rule: The Sahm Rule, devised by economist Claudia Sahm, is a heuristic measure used by the Federal Reserve to determine whether the U.S. economy is in a recession. The Sahm Recession Indicator signals the...
May Home Price Growth Slows Down Annually, S&P's Case-Shiller Index Shows
May Home Price Growth Slows Down Annually, S&P's Case-Shiller Index Shows
Jul 30, 2024
12:20 PM EDT, 07/30/2024 (MT Newswires) -- US home prices increased in May at a similar sequential pace as that in the previous month, while the annual measure slowed down, S&P Global ( SPGI ) division S&P Dow Jones Indices said Tuesday. Nationally, the S&P CoreLogic Case-Shiller Index rose 0.3% in May after seasonal adjustment, the same rate as in...
Kamala Harris vows to combat price gouging, bring down costs
Kamala Harris vows to combat price gouging, bring down costs
Jul 30, 2024
ATLANTA (Reuters) - U.S. Vice President Kamala Harris pledged to battle price gouging, bring down costs and ban hidden bank fees if she wins a Nov. 5 general election in which she is the Democrats' likely presidential nominee. On day one, I will take on price gouging and bring down costs, Harris told a political rally in Atlanta. We will...
US job openings edge lower in June
US job openings edge lower in June
Jul 30, 2024
WASHINGTON (Reuters) - U.S. job openings fell marginally in June and data for the prior month was revised higher, pointing to continued labor resilience that is underpinning the economy. Job openings, a measure of labor demand, had dropped 46,000 to 8.184 million by the last day of June, the Labor Department's Bureau of Labor Statistics said in its Job Openings...
Copyright 2023-2025 - www.financetom.com All Rights Reserved