Interest rate message from Fed member Kugler

Fed Governor Kugler said the appropriate time to cut interest rates would be toward the end of the year. Fed Governor Adriana Kugler said it would be appropriate to cut interest rates “later this year” if inflation continues to moderate along with a cooling but resilient labor market. Kugler emphasized the need to be data-dependent, especially given that the risks to inflation and employment have become much more balanced. Kugler said she will begin easing monetary policy toward the end of the year. “I would anticipate that would be appropriate if economic conditions continue to develop in this positive direction, with inflation falling more rapidly, as seen in the last three months of inflation,” she said. Fed officials have increased signals that they are moving closer to cutting interest rates, but most, including Chair Jerome Powell, stopped short of offering any guidance on the timing of such a move. Officials are expected to keep interest rates at their highest level in more than two decades when they meet on July 30-31.