Fed's Kugler: Economy appears to have dodged a wage price spiral

Federal Reserve (Fed) Board of Governors member Adriana Kugler is cautiously optimistic that progress on disinflation will continue with the Fed avoiding any significant deterioration in the domestic labor market. The Fed's Kugler delivered prepared remarks while speaking at the Stanford Institute for Economic Policy Research.

Key highlights

• US economy appears to have dodged a wage price spiral.
• Fed actions have helped to bring down inflationary pressures, and helped to anchor inflation expectations.
• Fed's Kugler remains cautiously optimistic inflation will fall without job market damage.
• Signs that firms are adjusting prices slower helps to bolster disinflation confidence.
• Inflation pressures have cooled significantly.
• Fed has faced less of a tradeoff between inflation and jobs.
• Workers and employers are better at finding each other currently.
• Goods and labor shortages have both declined.