Fed’s Kugler is on CNBC and says:
- US economy ended 2024 in a good place
- The economy is resilient
- Process of disinflation has kept going.
- Labor market remains resilient
- The labor market has been cooling gradually.
- Real wages are still up even with labor market cooling.
- The key is that job market has cooled gradually.
- Current unemployment rate remains historically low.
- The job market appears in a stable situation
- The unemployment rate is not increasing rapidly.
- Productivity is one of the supply shocks that helps having a healthy economy with disinflation.
- Is optimistic about productivity.
- Will not comment on policies of incoming administration.
- Immigration has been helpful in balancing the US labor market.
- Uncertain what will happen with immigration trends.
- Uncertain what tariffs will do to the economy and monetary policy.
- It may depend on the permanence of the tariffs.
- Fed is dealing with a wide set of economic scenarios.
- We are dealing with a bump in inflation.
- Watching to see if inflation pressures will remain sticky
- Data will drive what Fed does with policy.
- There is a view Fed can take time on future rate cuts
This article was written by Greg Michalowski at www.forexlive.com.
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