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.Fed’s Kugler is on CNBC and says: US economy ended 2024 in a good placeThe economy is resilientProcess of disinflation has kept going.Labor market remains resilientThe 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 situationThe 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 stickyData 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.  Read MoreCentral Banks 

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