Central Banks
Fed’s Kugler Repeats Rate Cut Likely Appropriate Later This Year
- Layoff-driven rise in unemployment would prompt move sooner
- Rebalancing in US labor market suggests inflation headed to 2%
This article is for subscribers only.
Federal Reserve Governor Adriana Kugler said it would be appropriate to lower borrowing costs “later this year” if inflation continues to moderate alongside a cooling yet resilient labor market.
Kugler emphasized the need to be data dependent, especially given the risks to inflation and employment have become much more balanced. Her comments on the rate outlook echo those made in June.