Federal Reserve Governor Adriana Kugler said on Tuesday that the most recent economic data had shown some signs of softness, while the U.S. labour market remained stable through February.
The official also noted that progress toward the Fed's 2% inflation target has slowed since last summer, with estimates indicating a 2.5% year-over-year increase in the personal consumption expenditures (PCE) price index last month. She added that surveys suggest that consumers are expecting further increases in the near term, and she is closely monitoring both the acceleration of price gains and higher inflation expectations, particularly in light of recent inflationary pressures.
In addition, Kugler said she views the Fed's current policy stance as continuing to be restrictive and believes the central bank's policy is well-positioned.
She emphasised that the Federal Reserve can hold rates at their current level while assessing incoming data and the cumulative effects of new policies.
Kugler also stressed that she remains committed to bringing inflation back to 2% while maintaining a strong labour market, and will continue to carefully evaluate new data, the evolving outlook, and risks when determining the appropriate policy path.