US Fed sees hope for rate cuts as inflation shows signs of easing

Federal Reserve officials, encouraged by recent data, are looking for further evidence that inflation is on a downward trend. They’re also keeping an eye on the still-strong labor market to avoid unintended consequences. Most expect the Fed to cut interest rates one or two times by year-end.

Governor Kugler highlighted positive signs for inflation returning to the Fed’s 2% target, after a temporary stall earlier this year. She believes current policies are effective in reducing price pressures without harming employment.

“If things progress as expected,” Kugler stated, “easing monetary policy later this year might be appropriate.” She described recent data, including stable consumer prices between April and May, as “promising.” While acknowledging that further improvement is needed, Kugler expressed confidence in the current economic trajectory.

Attribution: Reuters