Fed Governor Kugler: If unemployment continues to rise, it would be appropriate for the Fed to cut interest rates early

Fed Governor Kugler said that the rebalancing of the job market means that inflation will fall to 2%. If the unemployment rate continues to rise, it would be appropriate for the Fed to cut interest rates in advance, and reiterated the position that "it would be appropriate to cut interest rates later in 2024." "The risks facing inflation and employment are now more balanced. Inflation has continued to decline, but it is still above the target. Data released by non-government departments provide another perspective for the overall economy." In addition, Kugler said that he is cautiously optimistic that US inflation will make progress toward 2%, and the Fed does not want the labor market to cool too much. (Jinshi)