Fed’s Kugler: Policy has more work to do, judgement will be guided by data

• Preponderance of labor market data shows it coming into balance
• Mon pol is ‘sufficiently restrictive’, economic conditions moving in the right direction
• If wage growth continues to moderate, will soon be at levels consistent with price stability
• Most indicators point to a slow, steady easing of labor market
• Watching closely for signs of labor market deterioration
• I expect some cooling of economic data to continue
• Inflation too high but encouraged by renewed recent progress

Two things: The Fed is going to continue to be watching inflation closely but it’s noisy. Ultimately, it could be a dip in jobs that could shift them more to the dovish camp.

This article was written by Adam Button at www.forexlive.com.