Figma Shares Indicated To Open $105/$110
Investing.com-- Federal Reserve Governor Adriana Kugler said on Thursday that while inflation has eased since its 2022 peak, price pressures remain persistent, warranting a cautious approach to interest rate cuts.
“Inflation has fallen significantly since its peak in the middle of 2022, though the path continues to be bumpy and inflation remains somewhat elevated,” Kugler said at an event at Georgetown University.
She estimated that the Fed’s preferred gauge, the personal consumption expenditures (PCE) price index, likely rose 2.4% in January, with core prices up 2.6%.
Kugler backed the Federal Open Market Committee’s (FOMC) January decision to hold rates steady, after 100 basis points of cuts since September, noting that risks to inflation still outweigh concerns over employment.
“I see this as appropriate, given that the downward risks to employment have diminished but upside risks to inflation remain,” she said.
On the broader economy, Kugler highlighted continued resilience, with GDP growing 2.5% in 2024 and payrolls adding an average of 189,000 jobs monthly over the past four months. The unemployment rate has steadied at 4%, suggesting a labor market that is neither overheating nor weakening.
Kugler also detailed the “waves of inflation” that followed the pandemic, from surging food and goods prices to rising housing costs, which have complicated policymakers’ efforts to restore price stability.