Federal Reserve governor Adriana Kugler noted on Thursday that the U.S. has seen considerable disinflation while experiencing a cooling but still resilient labour market.
The official, however, cautioned that there are likely to be ongoing challenges to ease inflation further from housing factors and other factors. In addition, she noted that the labour market has rebalanced itself and cooled. "A continued but slowing trend in disinflation and cooling labour markets means that we need to continue paying attention to both sides of our mandate,” Kugler stressed.
The Fed's governor also noted that if inflation doesn’t slow further it would be appropriate to pause policy rate cuts but if the labour market slows down suddenly, it would be appropriate to continue a gradual reduction in the policy rate.