Fed Governor Kugler: We must focus on both inflation and employment goals

Fed Governor Kugler said policymakers must focus on the Fed's inflation and employment goals, noting that the labor market is cooling and progress on the Fed's 2% inflation target is slow. "The continued slowdown in anti-inflation trends and the cooling of the labor market mean that we need to continue to focus on both tasks," Kugler said in prepared remarks Thursday. "If there are any risks that impede progress or re-accelerate inflation, it would be appropriate to pause our policy rate cuts. But if the labor market slows abruptly, it would be appropriate to continue to gradually reduce the policy rate." Kugler said that slowing wages and stable inflation expectations could slow price growth further, but stubborn inflation in housing and other categories could hinder further progress. (Jinshi)