More from Fed’s Kugler: Stable labor market gives the Fed time to make decisions

Fed Governor Kugler:

• Stable labor market gives the Fed time to make decisions
• Not at 2% inflation makes sense to hold rates steady
• Wants to make sure inflation progress continues
• The economy is resilient and the labor market is healthy
• INflation rate has gone sideways and firmed
• Watching money markets closely as the balance sheet shrinks
• Need to see continued slowing of inflation to feel comfortable about cutting rates
• Concern that not getting as much help with goods inflation
• Good news is that housing inflation came down in Q4
• The neutral rate has gone up some, but not as much as some others think it has
• We are not quite at the neutral rate yet

Comments are consistent with keeping policy steady for now.

This article was written by Greg Michalowski at www.forexlive.com.