- ORIGINAL NEWS
Fed Governor Kugler backs caution on rates; Kashkari expects only two or three cuts
- SUMMARY
Federal Reserve Governor Adriana Kugler believes that inflation is decreasing but isn’t quite low enough to cut interest rates yet.
She sees signs of decreasing wage growth, fewer companies raising prices as often, and expectations of further price decreases in the future.
However, she wants to be certain that this trend continues before taking any action.
Analysts like Neel Kashkari or Susan Collins have been cautious about cutting rates too fast; they foresee only two or three reductions this year, and they need more data before adjusting the policy stance.
Other members, like Thomas Barkin, favor patience and looking closely at the economic data to ensure continued progress toward stable inflation.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Federal Reserve Governor Adriana Kugler said Wednesday inflation is showing solid signs of slowing down.”
““That drumbeat you hear is the soft landing,” Richmond Fed President Thomas Barkin said during an appearance with the Economics Club of Washington, D.C.”
Negative
“But again, I don’t want to prejudge things.”
“Fed officials generally have expressed broad satisfaction with the balance of growth and inflation as the central bank seeks to steer the economy back into stable inflation without halting growth.”