Fed's Kugler: Inflation has firmed and neutral rates have risen

Federal Reserve (Fed) Board of Governors member Adriana Kugler noted on Friday that US growth and economic activity remain healthy overall, but noted that progress toward the Fed's inflation goals has been somewhat lopsided.

Key highlights

In considering appropriate policy rates, we will watch developments, carefully assess data, outlook and risks.

Recent progress on inflation is slow and uneven. Inflation remains elevated.

January jobs report shows the US labor market is healthy, neither weakening nor overheating.

Continued productivity gains would help the Fed attain goals.

The US economy is on a firm footing. I anticipate solid GDP growth in Q1.

US economic activity remains resilient.

A stable labor market gives the Fed time to make decisions.

We're not at 2% inflation; it makes sense to hold rates steady.

Need to see continued slowing of inflation to feel comfortable cutting rates.

The economy is resilient and the labour market is healthy.

The inflation rate has gone sideways and firmed.

It makes sense to hold the policy rate where it is.

The good news is housing inflation came down in Q4.

Neutral has risen some, not as much as some others see.

We are not quite at neutral yet.

There will be a lot of discussion, papers, and debate regarding the rest of the Fed's policy framework.