Fed's Kugler: I support keeping the policy rate in place as long as inflation risks remain

Joshua Gibson FXStreet

Federal Reserve (Fed) Board of Governors member Adriana Kugler added her voice to the growing chorus of Fed policymakers cautioning that rising inflation pressures, though still small, will force the Fed to stand pat on interest rates for the time being.

Key highlights

I support keeping the current policy rate in place as long as upside risks to inflation continue

Inflation expectations have risen, upcoming policy changes hold upside risk.

The latest data indicate progress towards 2% inflation target may have stalled.

Labor market indicators suggest continued moderation but not significant weakening.

Given recent high inflation, consumer expectations may be more sensitive to further price increases.

I take comfort that increases in long-term inflation expectations have so far been small.

(This story was corrected on April 3 at 09:13 GMT to say Adriana Kugler, not Ariana.)

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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