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