Federal Reserve Governor Adriana Kugler said on Tuesday that the central bank’s interest rate policy remains restrictive and well-positioned. However, she noted that progress toward returning inflation to the 2% target has slowed since last summer, and described the recent uptick in goods inflation as "unhelpful."
Key Quotes
Sees current fed policy as still restrictive; judges that policy is well positioned.
It is estimated that 12-month PCE was 2.5% in February, based on CPI and PPI data.
Progress on bringing inflation to target has slowed since last summer.
Return of positive goods inflation is 'unhelpful' as it had helped keep a lid on total inflation and inflation expectations.
Surveys show consumers expecting further increases in the near term, with uncertainty tied to trade policy.
Paying close attention to acceleration of price increases and higher inflation expectations.
Latest economic data for early this year have shown some signs of softness.
Labour market appears to be stable through February; unemployment rate is low.
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