Fed’s Kugler: Inflation progress key, but focus on employment also needed

In a speech today, Fed Governor Adriana Kugler expressed her support on “shifting attention to the maximum-employment side” of the dual mandate, while maintaining focus on fighting inflation.

While labor market “remains resilient”, Kugler emphasized, the important of “avoiding an undesirable slowdown in employment growth and economic expansion.”

Regarding future rate decisions, Kugler noted that, “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.”

However, she remained cautious, suggesting that if downside risks to employment rise, Fed may need to “more quickly” in easing policy to a neutral stance.

Full speech of Fed’s Kugler here.