Fed's Kugler: Progress on bringing inflation to target has slowed since summer
- It is estimate that 12-month PCE was at 2.5% in Feb based on CPI and PPI
- Progress on bringing inflation to target has slowed
- Return of positive goods inflation is ‘unhelpful’ as it had helped keep a lid on total inflation and inflation expectations
- Surveys show consumers expecting further increases in the near term, with uncertainty tied to trade policy
- Paying close attention to acceleration of price increases and higher inflation expectations
- Latest economic data for early this year have shown some signs of softness
- Labor market appears to be stable through Feb; unemployment rate is low
She is slightly more hawkish on the fringes here but this isn’t much of a signal. Take the Fed at its word when they say they’re watching the data and trying to figure it out.
This article was written by Adam Button at www.forexlive.com.
