Federal Reserve's Strategic Shift: Balancing Inflation and Employment

Federal Reserve Governor Adriana Kugler supports recent interest rate cuts and favors further reductions if inflation continues to ease. She emphasizes the importance of balancing inflation control with employment growth. Kugler notes a resilient labor market and a cautious approach to adjusting monetary policy.

Federal Reserve Governor Adriana Kugler has expressed strong support for the central bank's recent interest rate cut, indicating a readiness to back further reductions if inflation continues to diminish as predicted.

In September, the Federal Reserve trimmed interest rates by half a percentage point, and investors are anticipating an additional minor cut in November due to cooling in the labor market and ongoing easing of inflationary pressures.

According to Kugler, while the priority remains on achieving a 2% inflation target, attention can now also pivot towards the maximum-employment mandate. She noted the labor market's initial signs of cooling and emphasized the need for a measured pace to prevent undue economic strain.

(With inputs from agencies.)