Fed’s Kugler encouraged by renewed progress on inflation

In a speech, Fed Governor Adriana Kugler acknowledged that while inflation remains too high, she is “encouraged” by the overall progress and outlook. Kugler expressed “cautious optimism” based on recent economic and inflation data, suggesting that Fed is on track towards its 2% inflation target.

She noted that progress may have stalled in the first quarter of the year, but subsequent information on economic activity, the labor market, and inflation indicates “renewed progress.”

Kugler indicated that, “If the economy evolves as I am expecting, it will likely become appropriate to begin easing policy sometime later this year.”

Full speech of Fed’s Kugler here.