Fed’s Kugler says she strongly supported 50 bps rate cut

Ahead of Kugler, the market was pricing in a 62% chance of a 50 bps cut on November 7.

• Says she will support additional rate cuts going forward
• Fed should keep focus on reducing inflation and also shift attention to maximum employment
• Estimates PCE inflation at 2.2% in August, Core PCE at 2.7% in signs of progress towards goal
• May tame some time to feel that prices are back to normal
• There has been a significant moderation in the labor market recently
• Expects spending to grow at a somewhat more moderate pace moving forward
• Fed must now ‘balance its focus’ to continue to make progress on inflation while avoiding unnecessary pain in the economy

There is nothing surprising in the comments, which match up with what Powell and Waller have said.

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