Fed Governor Expects Inflation to Fall, Opening Door for Interest Rate Cut

Federal Reserve Governor Adriana Kugler believes that inflation will continue to fall this year, leading to a possible interest rate cut.

Federal Reserve Governor Adriana Kugler believes that inflation will continue to fall this year, leading to a possible interest rate cut. She expects disinflation and labor market conditions to proceed as she currently expects, which would make a policy rate reduction appropriate. However, she also acknowledges that inflation progress can be unpredictable. The annual core PCE is currently at 2.8%, which is above the Fed's 2% target.

Data on new tenant rent agreements indicate that housing inflation will continue to cool

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Federal Reserve Inflation Interest Rates Disinflation Labor Market Policy Rate Core PCE Housing Inflation

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