Fed's Kugler: Cooling inflation and labor markets may make rate cut appropriate at some point

Federal Reserve Governor Adriana Kugler said on Wednesday that she is pleased with the great progress on inflation and added that she is optimistic that the progress will continue, per Reuters.

Key quotes

"Fed’s job on inflation is not done yet."

"Will remain focused on Fed’s inflation goal until confident inflation is returning durably to 2% target."

"Risks to our dual mandate are roughly balanced."

"Our policy stance is restrictive."

"At some point, cooling inflation and labor markets may make rate cut appropriate."

"If disinflation progress stalls, may be appropriate to hold policy rate steady for longer."

"Continued moderation of wage growth, normalization of price-setting, anchored inflation expectations are likely to contribute to continued disinflation."

"Pleased that cooling of labor demand has not led to rise in layoffs."

"Expecting consumer spending to grow more slowly this year, should help with disinflation."

"Some measures of financial conditions have eased but remain relatively tight and are consistent with continued progress on inflation."

"Paying close attention to upside inflation risks from geopolitics."

Market reaction

These comments don't seem to be having a noticeable impact on the US Dollar's valuation. At the time of press, the US Dollar Index was down 0.06% on the day at 104.07.