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Fed’s Kugler Says Lower Rates This Year Likely Appropriate
Inflation could moderate further without a significant cost to jobs or economic growth this year, setting the stage for “some” cuts in borrowing costs, Federal Reserve Governor Adriana Kugler said. Weaker consumer spending should help slow economic growth to below last year’s 3.1% pace, Kugler said, and demand for workers is easing as well. “With demand growth cooling, given the backdrop of solid supply, my baseline expectation is that further disinflation can be accomplished without a significant rise in unemployment,” Kugler said in remarks at Washington University in St. Louis on Wednesday. “If ... (full story)