Fed Governor Kugler:
- Stable labor market gives the Fed time to make decisions
- Not at 2% inflation makes sense to hold rates steady
- Wants to make sure inflation progress continues
- The economy is resilient and the labor market is healthy
- INflation rate has gone sideways and firmed
- Watching money markets closely as the balance sheet shrinks
- Need to see continued slowing of inflation to feel comfortable about cutting rates
- Concern that not getting as much help with goods inflation
- Good news is that housing inflation came down in Q4
- The neutral rate has gone up some, but not as much as some others think it has
- We are not quite at the neutral rate yet
Comments are consistent with keeping policy steady for now.
This article was written by Greg Michalowski at www.forexlive.com.
