Home » Fed’s Kugler: Economy appears to have dodged a wage price spiral

Fed’s Kugler: Economy appears to have dodged a wage price spiral

by FX BrokerNews

Adriana Kugler, a member of the Federal Reserve (Fed) Board of Governors, expressed cautious optimism regarding the ongoing progress in addressing disinflation. Kugler noted her confidence in the Fed’s ability to prevent any substantial deterioration in the domestic labor market. These comments were part of her prepared remarks delivered at the Stanford Institute for Economic Policy Research.

Key highlights

  • The U.S. economy seems to have avoided a wage-price spiral.
  • The actions taken by the Federal Reserve have contributed to reducing inflationary pressures and have played a role in anchoring inflation expectations.
  • Adriana Kugler from the Federal Reserve retains a cautious optimism that inflation will decrease without causing harm to the job market.
  • The indication that businesses are adjusting prices at a slower pace serves to strengthen confidence in the disinflationary trend.
  • Inflation pressures have cooled significantly.
  • Fed has faced less of a tradeoff between inflation and jobs.
  • Workers and employers are better at finding each other currently.
  • Goods and labor shortages have both declined.

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